S&P rates Washington Cos.-affiliated loan BB, notes BB-

S&P said it assigned its B+ long-term corporate credit rating to Northwest Acquisitions ULC, an entity affiliated with the Washington Cos. The outlook is stable.

At the same time, S&P assigned its BB issue-level rating and 1 recovery rating to the company's proposed $200 million first-lien senior secured credit facility. The 1 recovery reflects an expectation of very high (90%-100%; rounded estimate 95%) recovery in the event of default.

S&P also assigned a BB- issue-level rating and 2 recovery rating to the company's proposed $550 million second-lien senior secured notes. The 2 recovery reflects an expectation of substantial (70%-90%; rounded estimate 80%) recovery in default.

“The rating on Northwest primarily reflects our view of the company's limited operating breadth related to the production of rough diamonds exclusively from interests in two mines that Dominion Diamond Corp. currently owns,” S&P said in a news release.

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