S&P: Iron Mountain notes B+

Standard & Poor’s said it affirmed the B+ corporate credit rating on Iron Mountain Inc.

The agency also said it assigned a B+ rating and 3 recovery rating to the company’s proposed $800 million senior unsecured notes due 2020.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it revised the recovery rating to 2 from 1 on the company’s existing senior secured credit facility, which consists of a $1.5 billion revolver and $250 million term loan A.

S&P also lowered the rating on the facility to BB- from BB. The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it revised the recovery rating on the company’s C$200 million 6 1/8% senior unsecured notes to 2 from 3 and subsequently raised the issue-level rating to BB- from B+. The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is positive.

The proceeds will be used to repay about $800 million of existing senior subordinated notes.

The downgrades reflect the increased amount of senior debt that, under certain conditions, will rank equally with senior secured credit facility obligations, S&P said.

The upgrade of the C$200 million notes reflects the additional credit support from Iron Mountain Canada, the agency said.

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