S&P upgrades RGIS

S&P said it raised the corporate credit rating on RGIS Holdings LLC to B- from CCC+.

The agency also said it removed the rating from CreditWatch, where it was placed with positive implications in March following news that the company is refinancing its capital structure.

The outlook is stable.

S&P also said it raised the rating on the company's $460 million senior secured first-lien term loan due 2023 and $35 million senior secured revolver due 2022 to B- from CCC+.

The recovery rating remains at 3, indicating 50% to 70% expected default recovery.

S&P also said it withdrew the issue-level ratings on the company's term loan C due 2017 and revolver due 2017, which were paid off in connection with this refinancing.

The upgrade reflects the company's improved liquidity position and debt maturity profile after closing the refinancing transaction, the agency explained.

The upgrade also considers an expectation that credit metrics will remain stable, albeit weak, S&P said. Free cash flow is expected to remain comfortably positive despite an increased interest burden, the agency noted.

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