S&P cuts Oak Holdings, facility

S&P said it lowered its corporate credit rating on Oak Holdings LLC to B from B+.

The outlook is stable.

At the same time, the agency lowered the issue-level rating on the company's $40 million revolving credit facility due 2021 and $395 million first-lien term loan due 2023 to B from B+. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate 55%) recovery in the event of a payment default.

“The downgrade reflects the company's execution missteps of certain initiatives which resulted in deteriorating EBITDA and forecasted adjusted leverage of between 6x-6.5x over the next 12-18 months,” S&P said in a news release.

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