S&P gives B to Aclara loan

S&P said it affirmed its B corporate credit rating on Meter Readings Holding LLC, the parent company of Aclara Technologies LLC. The outlook is stable.

At the same time, S&P affirmed its B issue-level rating on the company's senior secured credit facility, which S&P expects will be upsized to $425 million following the upcoming $80 million add-on term loan transaction. The existing $345 million term loan and the proposed $80 million add-on term loan will both mature in August 2023.

The 3 recovery rating on the facility remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default.

“Despite the additional debt that Aclara is taking on to fund the dividend distribution, the company's credit measures and liquidity should remain acceptable for the current rating over the next year as it posts a solid operating performance and benefits from its cost-savings initiatives,” said S&P credit analyst James Siahaan in a news release.

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