S&P rates CHG PPC, facilities B

S&P said it assigned its B corporate credit rating to CHG PPC Intermediate II LLC and CHG PPC Parent LLC.

The outlook is stable.

At the same time, the agency assigned a B issue-level rating to the company's proposed $125 million revolving credit facility due 2023 and $655 million first-lien term loan maturing in 2025. The recovery rating is 3, indicating an expectation for meaningful recovery (65% rounded estimate) in the event of a payment default.

PPC Partners is acquiring CHG PPC Intermediate for about $1.4 billion.

“The ratings reflect high starting leverage near 6x pro forma for the transaction, and our belief that the company's new owners, PPC Partners, will seek to make acquisitions in the near-term and manage leverage over 5x,” S&P said in a news release.

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