S&P lowers Osmose loan B

Standard & Poor’s said it lowered the corporate credit rating on OHI Intermediate Holdings Inc. to B from B+ and removed the rating from CreditWatch, where it was placed with negative implications in April.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to Osmose Holdings Inc.’s proposed $25 million revolver due 2019 and $235 million second-lien loan due 2021.

Osmose is a subsidiary of OHI. The 3 recovery rating reflects 50% to 70% expected default recovery.

The agency said it will withdraw the ratings on Osmose’s existing credit facility following full repayment upon the close of the transaction.

The downgrade reflects OHI’s weaker credit measures because of the company’s sale of its wood preservation and railroad services businesses, S&P said, and its subsequent debt refinancing.

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