S&P ups KBR first-lien loans

S&P said it raised its ratings on KBR Inc.’s first-lien loans to BB+ from BB and revised their recovery ratings to 2 from 3. The 2 recovery rating indicates substantial (70%-90%; rounded estimate: 75%) recovery.

Concurrently, S&P assigned BBB- issue and 1 recovery ratings to Kellogg Brown & Root Ltd.’s £122 million term loan A-3 issued on Nov. 18. The 1 recovery rating indicates very high (90%-100%; rounded estimate: 95%) recovery.

The proceeds were used to repay a portion of the revolver balance used to help finance the purchase of Frazer-Nash Consultancy Ltd. on Oct. 20.

The agency also affirmed the BB- issue-level and 5 recovery ratings on its senior unsecured notes. The subordinated convertible notes remain unrated. Additionally, S&P affirmed the BBB- issue-level rating and 1 recovery rating on Kellogg Brown & Root Pty Ltd.'s (KBR Australia) term loan A-1.

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