S&P lifts KNB Holdings

S&P said it upgraded KNB Holdings Corp. and its first-lien term loan to CCC+ from CCC-. The loan’s 4 recovery rating is unchanged, indicating expectations for average (30% to 50%; 40% rounded estimate) recovery in default.

KNB's operational performance improved in the second half of 2020 and S&P expects continued improvements into 2021. “We believe a near-term default at KNB is no longer imminent,” the agency said in a press release.

However, the agency said it forecasts leverage will remain high for at least the next 12 to 24 months given the company's continued EBITDA recovery and high debt levels.

The outlook is stable.

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