S&P rates Brasa loans B+, B-

Standard & Poor's said it assigned a B corporate credit rating to Brasa Holdings Inc.

Brasa is the direct parent of Fogo de Chao Churrascaria Holdings LLC.

The outlook is stable.

The agency also said it assigned a B+ rating to Brasa's $205 million first-lien credit facility with a 2 recovery rating.

The facility consists of a $25 million revolver and a $180 million first-lien term loan.

The 2 recovery rating indicates 70% to 90% expected recovery in a default.

The agency also said it assigned a B- rating to the company's proposed $70 million second-lien term loan with a 5 recovery rating. The 5 rating indicates 10% to 30% expected recovery in a default.

The agency also affirmed the Fogo de Chao Churrascaria Holdings' B corporate credit rating.

The outlook is stable.

Following closure of the transaction, the agency said it expects to withdraw all existing ratings on Fogo de Chao.

The proposed leveraged buyout of Brasa by Thomas H. Lee Partners results in a reassessment of the company's financial risk profile to highly leveraged from aggressive, Fitch said.

The additional debt leads to moderate deterioration of Brasa's credit measures with pro forma total debt-to-EBITDA increasing to about 5.8x at the end of April from about 4.7x, the agency said.

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