S&P rates Four Seasons loans BB-, B-

Standard & Poor's said it assigned a B+ corporate credit rating to Four Seasons Holdings Inc., along with a BB- rating to its proposed $850 million first-lien facility, consisting of a $100 million revolver due 2017 and a $750 million term loan due 2020.

The agency also assigned a recovery rating of 2 to the facility. The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a B- rating to the company's proposed $250 million second-lien facility with a recovery rating of 6.

The 6 recovery rating reflects 0% to 10% expected default recovery.

The outlook is stable.

The proceeds from the first- and second-lien facilities to refinance the company's existing $750 million first-lien credit facility and to take out about $320 million in outstanding preferred shares issued at the time of the company's going-private transaction in 2007.

The ratings reflect the company's highly leveraged financial risk profile and satisfactory business risk, S&P said.

Despite the company's high leverage, Four Seasons has a strong liquidity profile, the agency said.

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