S&P cuts EHH notes to 4

Standard & Poor's said it lowered the recovery rating on EH Holdings Corp.'s senior secured notes due 2019 to 4 from 3. A 4 recovery rating indicates expectations for average (30%-50%) recovery in the event of a payment default.

S&P affirmed the B+ issue-level ratings on the company's senior secured notes.

The rating action reflects the upsizing of the senior secured notes to $1.1 billion from an initial size of $1 billion and does not imply a diminution in the overall credit quality of the company, the agency said. The upsized notes are provided lower collateral coverage.

S&P affirmed the B- issue-level rating on EHH's senior unsecured notes due 2021, which were also upsized by $100 million to $900 million. The 6 recovery rating on the notes remains unchanged and indicates expectations for negligible (0%-10%) recovery in the event of a payment default.

The upsizing of both notes has no effect on the company's B+ corporate credit rating and stable outlook.

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