S&P gives Zenith Energy, facilities B+

S&P said it assigned a B+ corporate credit rating to Zenith Energy U.S. Logistics Holdings LLC.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating to the company's $450 million term loan B and $50 million revolving credit facility. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default.

“Our ratings on Zenith are influenced by the company's high leverage and re-contracting risk, which exposes it to changing end-user demand and competition,” S&P said in a news release.

“Partially offsetting these weaknesses are the general cash flow stability associated with Zenith's storage assets and take-or-pay contracts and its good scale, scope and geographic diversity across the U.S.”

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