S&P lifts Emerald to positive

S&P said it revised the outlook on Emerald Expositions Holding Inc. to positive from stable.

The agency also said it affirmed the company’s B+ corporate credit rating.

The BB- and 2 recovery ratings on the upsized senior secured credit facility are unchanged. The 2 recovery indicates 70% to 90% expected default recovery.

S&P said it will withdraw the ratings on the company's 9% senior unsecured notes once they have been repaid with proceeds from the $200 million add-on to the senior secured term loan B.

The outlook revision reflects Emerald's stable operating performance, strong free cash flow generation, repayment of debt and modest acquisition strategy, which resulted in adjusted leverage declining to 4.8x as of June 30 from 5.3x at the end of 2015, the agency said.

The revision also considers an expectation that leverage will moderate to less than 4.5x over the next year as a result of EBITDA growth and debt repayment, S&P said.

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