S&P affirms Contanda

S&P said it affirmed the B corporate credit rating on Contanda LLC and affirmed the B issue-level rating on the company's $270 million term loan B and $30 million revolving credit facility.

The recovery rating is 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of default.

The outlook is stable.

S&P said it expects the company to have strong utilization rates and fee-based revenue generation combined with debt to EBITDA that exceeds 6x in coming years.

It also expects Contanda's parent, EQT Infrastructure II, to continue providing equity to deal with insufficient covenant headroom, the agency added.

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