S&P trims At Home loan to B+

S&P said it revised its recovery rating on At Home Group Inc.'s $341 million first-lien term loan to 3 from 2 and lowered its issue-level rating to B+ from BB-. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in a payment default.

“We based the rating action on the company upsizing its term loan by $50 million instead of issuing a new $425 million term loan, as was originally contemplated,” S&P said in a news release.

“Specifically, we believe that higher first-lien debt lowers the recovery prospects for lenders in a default scenario. All other ratings, including the B+ issuer credit rating and negative outlook, are unchanged.”

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