S&P lowers Albaugh loan

S&P said it affirmed the B+ corporate credit rating on Albaugh LLC.

The outlook is stable.

The agency also said it lowered the ratings on Albaugh's senior secured credit facility to BB- from BB and revised the recovery ratings on the facility to 2 from 1.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The ratings reflect the company's relatively limited product diversification, susceptibility to the vagaries of weather patterns, relatively low EBITDA margins and expectations for weak free operating cash flow in 2016, S&P said.

The agency also said it considered the company's plans to issue a $75 million add-on to its existing senior secured loan.

Somewhat offsetting these factors are the company's satisfactory geographic diversity, expectations for moderate demand growth based on favorable market trends and appropriate credit measures for the rating, S&P said.

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