S&P affirms Advantage Sales

S&P said it affirmed its B corporate credit rating on Advantage Sales & Marketing Inc.

The outlook is stable.

At the same time, the agency affirmed the B issue-level rating on the $200 million revolving credit facility expiring in 2021 and $2.6 billion first-lien term loan (including the proposed $350 million add-on) maturing in 2021.

The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P also affirmed the CCC+ rating on the second-lien debt maturing in 2021. The 6 recovery rating reflects an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

All the ratings were removed from CreditWatch, where they were placed with positive implications on May 8, 2017.

The agency said the affirmation reflects a view of reduced likelihood that Advantage's indirect parent-entity, Advantage Solutions Inc., will transact an IPO at least over the near term, which S&P previously thought would result in less aggressive financial policies as a public company and immediate credit ratio improvement.

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