S&P may lift JHCI, rates loans B-, CCC

Standard & Poor's said it placed its CCC+ corporate credit rating on JHCI Acquisition Inc. on CreditWatch with positive implications.

S&P also assigned a B- rating to the company's proposed first-lien debt, with a recovery rating of 3, indicating an expectation that lenders would receive a meaningful recovery (50% to 70%) if a payment default occurs.

S&P also assigned a CCC rating to the company's second-lien facility, with a recovery rating of 6, indicating an expectation that lenders would receive negligible recovery (0% to 10%) if a payment defaults.

Upon successful completion of the proposed refinancing, S&P said it expects to raise the corporate credit rating to B- and remove the rating from CreditWatch.

"The CreditWatch placement follows JHCI's announcement that it is entering into new credit agreements that will refinance existing debt coming due in June and December 2014 and improve liquidity," said S&P credit analyst Lisa Jenkins in a news release.

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