S&P rates Strategic Partners loan B

S&P said it assigned its B corporate credit rating to Strategic Partners Acquisition Corp. The outlook is stable.

At the same time, S&P assigned a B issue-level rating to the company’s $370 million senior secured credit facility, which consists of a five-year $45 million revolving credit facility and a seven-year $325 million first-lien term loan. The recovery rating is 3, indicating an expectation of meaningful (50% to 70%, on the high end of the range) recovery in the event of a default.

“Our ratings on Strategic Partners reflect expectations of aggressive financial policies as a result of its majority ownership by a financial sponsor, limited scale, narrow business focus, and some customer concentration in the highly competitive and fragmented medical uniform industry,” said S&P analyst Gerald Phelan in a news release.

“The company benefits from its market leadership position, stable demand for its products, consistent operating profitability, and good profit margins,” he added.

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