S&P rates Turbo Alpha loans B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Abbot Group Ltd. and to parent Turbo Alpha.

The agency also assigned a B+ and 3 recovery rating to the proposed $1.55 billion senior secured credit facility issued by Turbo Alpha and guaranteed by Abbot.

The outlook is stable.

The rating on Abbot factors in the group's very high initial debt following its recent leveraged buyout of First Reserve Corp. and its activity in a historically cyclical and capital-intensive industry, the agency said.

Mitigating these weaknesses is the favorable industry outlook over the medium term, as well as Abbot's strong strategic positioning in international growth markets, its geographic and operational diversification, and its strategy to ensure strong medium-term contractual revenue visibility, S&P said.

Following completion of the buyout, Abbot's net debt-to-EBITDA ratio will be 5 times in 2008.

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