S&P reviews Badger Holding

S&P said it placed the B+ corporate credit rating on Badger Holding LLC on CreditWatch with negative implications.

The B+ issue-level rating and 4 recovery rating on the company's existing term loan are unchanged. The 4 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 45%) recovery in the event of a payment default.

"The CreditWatch negative placement follows an announcement by Badger that it will combine its subsidiary, Safway Group, with Brand Energy & Infrastructure Services," S&P credit analyst Robyn Shapiro said in a news release.

The agency expects that the combined entity will have weaker credit metrics relative to expectations for a B+ corporate credit rating. The terms of the transaction were not publicly disclosed.

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