S&P rates Aecom loans BB+, notes BB-

Standard & Poor's said it assigned its BB corporate credit rating to Aecom Technology Corp.

The outlook is stable.

At the same time, the agency assigned its BB+ issue rating and 2 recovery rating to the company's senior secured credit facilities. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%) in a payment default scenario. The senior secured credit facilities include a $1.05 billion revolver, a $1,925,000,000 term loan A, a $500 million performance letter-of-credit facility and a $1,187,500,000 term loan B.

S&P also assigned its BB- issue rating and 5 recovery rating to the company's $800 million senior unsecured notes due 2022 and $800 million senior unsecured notes due 2024. The 5 recovery rating indicates an expectation for modest recovery (10%-30%) in a payment default scenario.

The company used proceeds to partly finance its acquisition of URS Corp.

"Our BB corporate credit rating on Aecom reflects the company's participation in the volatile and competitive E&C industry," S&P credit analyst Robyn Shapiro said in a news release. "We expect pro forma debt leverage of about 4.5x as of the fiscal year ended September 2014."

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