S&P ups Darling notes

Standard & Poor's said that it revised the recovery ratings on Darling International Inc.'s $250 million of senior notes due 2018 to 3, indicating meaningful recovery (50%-70%) in the event of a payment default, from a recovery rating of 5 or modest recovery expectations (10%-30%). S&P raised the issue-level ratings on this debt to BB from BB-.

The BBB- issue level ratings on the company's first-lien secured debt remain unchanged, with a recovery rating of 1, indicating very high recovery (90%-100%) in the event of a payment default.

The recovery rating revision on the senior unsecured debt reflects Darling's $240 million prepayment on its senior secured term loan during its first quarter of fiscal 2011, the agency added.

The ratings on Darling reflect the opinion that the company has a weak business risk profile and an intermediate financial risk profile, S&P said. Darling's financial risk profile primarily corresponds with the company's modest financial policies and the belief that Darling will maintain credit measures.

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