S&P rates EnergySolutions notes BB-, loan BB+

Standard & Poor's said it assigned a BB- rating and 4 recovery rating to the $300 million 10¾% senior unsecured notes due 2018 co-issued by EnergySolutions Inc. and subsidiary EnergySolutions LLC. The 4 recovery rating indicates an expectation of 30% to 50% recovery in a default. The agency also said it assigned a BB+ issue-level rating and 1 recovery rating to EnergySolutions LLC's $665 million credit facility, which consists of a $105 million revolving facility due 2015 and a $560 million term loan due 2016. The 1 recovery rating indicates an expectation of 90% to 100% recovery in a default.

The amount of the revolving credit facility is $105 million, compared with $125 million originally expected, S&P said.

The proceeds will be used to refinance the company's outstanding debt under its previously existing credit facilities.

The ratings reflect the company's aggressive financial risk profile, marked by significant debt, along with the risks associated with participating in the highly regulated low-level radioactive waste industry, including competitive contract bidding, S&P said.

The company's leading market position, limited competition in primary service areas, improved operating results and predictable free cash flow generation partially offset these factors, the agency said.

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