S&P rates ASP MSC Acquisition loan B

S&P said it affirmed the B corporate credit rating on MCS Group Subholdings LLC.

The agency also said it assigned a B corporate credit rating to ASP MCS Acquisition Corp.

The outlook is stable.

S&P also said it assigned a B rating to the company's first-lien credit facilities, including a $35 million revolving facility due in 2022 and $390 million term loan due in 2024.

The agency also said it assigned a 3 recovery rating on the first-lien facilities, indicating 50% to 70% expected default recovery.

ASP MCS Acquisition is the borrower pursuant to the proposed credit agreement, S&P said.

The company's adjusted debt will be about $415 million at closing, which includes adjustments for operating leases, the agency said.

The ratings reflect its substantial debt burden, small scale and narrow focus, S&P said, and its financial sponsor owner will continue to influence financial governance.

The company's credit metrics are weak because of high debt levels from acquisition-related obligations, the agency said.

Pro forma for the transaction, adjusted debt-to-EBITDA ratio will be 6.2x, compared to 4.3x as of December 2016, S&P said.

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