S&P revises Fairmount Minerals recovery to 3

Standard & Poor's said it revised its recovery rating on Fairmount Minerals' senior secured term loan and revolving credit facility to 3 from 4. The 3 recovery rating indicates an expectation for meaningful (50% to 70%) recovery in the event of a payment default.

The rating on the term loan and revolver remains BB-, same as the corporate credit rating.

Fairmount prepaid about $115 million of its term loan in 2012, reducing the principal balance to $815 million. Although this improvement is relatively modest, S&P said it now expects lender recoveries to exceed 50% because of the lower principal amount, prompting the agency to revise its recovery rating to a 3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.