S&P lowers Advantage Sales, rates loans B, CCC+

Standard & Poor’s said it lowered the corporate credit rating on Advantage Sales & Marketing Inc. by one notch to B from B+.

The agency said it removed this rating from CreditWatch, where it was placed with negative implications in June following news that the company was being acquired by affiliates of LGP and CVC.

The outlook is stable.

S&P also said it assigned B ratings to Advantage Sale’s proposed $200 million revolving credit facility and $1.8 billion first-lien term loan with recovery ratings of 3, indicating 50% to 70% expected default recovery.

The agency also said it assigned a CCC+ rating to the company’s proposed $760 million second-lien term loan with a recovery rating of 6, indicating 0 to 10% expected default recovery.

Upon completion of the proposed transaction on the terms currently proposed, the agency said it will withdraw all of the existing issue-level ratings on the company’s currently outstanding credit facilities, which are expected to be repaid.

The downgrades reflect the company’s increased debt levels and more aggressive financial policy following the acquisition transaction, S&P said.

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