S&P ups U.S. Security loan to B+

Standard & Poor's said it affirmed its B corporate credit rating on U.S. Security Associates Holdings Inc. and revised the outlook to stable from negative.

At the same time, the agency revised the recovery ratings to 2 from 3 and raised the issue-level ratings to B+ from B on the company's senior secured bank credit facility, consisting of a $75 million revolving credit facility due 2017 and $430 million term loan due 2017. The 2 recovery rating indicates an expectation for substantial (70% to 90%, in the lower half of the range) recovery for secured creditors in the event of a payment default.

As of June 30, 2015, the company had debt outstanding of $569 million.

"The outlook revision reflects our belief that the company will sustain recent improvements in operating performance over the next six to 12 months, leading to a gradual strengthening of credit metrics and supporting the company's ability to maintain more than 15% covenant cushion under its progressively tightening covenants," S&P credit analyst Peter Deluca said in a news release.

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