S&P rates Vesta loans B+, CCC+

Standard & Poor's said it assigned its B preliminary corporate credit rating to Vesta Corp. The outlook is stable.

At the same time, the agency said it assigned a B+ preliminary issue-level rating to the company's proposed $200 million first-lien senior secured term loan due 2017. The 2 preliminary recovery rating indicates an expectation of substantial recovery in the event of payment default.

The agency said it also assigned a CCC+ preliminary issue-level rating to the company's proposed $95 million second-lien senior secured term loan due 2018. The 6 preliminary recovery rating indicates an expectation of negligible recovery in the event of payment default.

"The preliminary ratings on Vesta reflect the company's vulnerable business risk profile, which derives from its narrow market focus, concentrated customer base and exposure to potential pricing pressure on upcoming contract renewals," said S&P credit analyst Christian Frank in a news release.

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