S&P rates Safe Fleet B; facilities B, CCC+

S&P said it assigned its B corporate credit rating to Safe Fleet Holdings LLC.

The outlook is negative.

At the same time, the agency assigned a B issue-level rating to the company's proposed first-lien credit facilities, which comprise a $50 million revolver due 2023 and a $410 million term loan due 2025.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in a payment default scenario.

Additionally, S&P assigned a CCC+ issue-level rating to the company's proposed $190 million second-lien term loan. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in a payment default scenario.

“Our ratings and outlook on Safe Fleet reflect the company's very high debt leverage following its acquisition by new financial sponsor Oak Hill,” the agency said in a news release.

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