S&P rates KWOR loan B

S&P said it assigned a B issuer credit rating to KWOR Holdings LP, which does business as Worley Claims Services.

The agency also said it assigned a B rating with recovery rating of 3 to KWOR's proposed $400 million first-lien credit facility consisting of a $50 million revolver due 2024 and $300 million term loan due 2026 with $50 million delayed draw option to fund potential acquisitions.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The $120 million second-lien term loan due in 2026 is unrated.

The outlook is stable.

KWOR Holdings is planning to issue debt to support the investment in the business by financial sponsor Kohlberg & Co., S&P explained.

The ratings reflect KWOR's weak business risk profile and highly leveraged financial risk profile, S&P said.

The stable outlook reflects an expectation that KWOR will demonstrate favorable and improving business fundamentals, enabling modest de-levering throughout the year, the agency said.

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