S&P rates American Residential notes B

Standard & Poor's said it assigned a B corporate credit rating to American Residential Services LLC, along with a B rating and recovery rating of 4 to its proposed $150 million senior secured second-lien notes due 2015. The recovery rating indicates an expectation of 30% to 50% recovery in the event of a default.

The outlook is stable.

The agency said it estimates that following the transaction, total funded debt outstanding will be about $154 million and pro forma adjusted debt-to-EBITDA will be about 5x.

The ratings reflect the company's narrow business focus, participation in highly fragmented and competitive end markets and its highly leveraged capital structure, S&P said.

© 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.