S&P rates Tensar loans B+, B-

Standard & Poor's said assigned its B corporate credit rating to Tensar Corp.

The outlook is stable.

Concurrently, the agency assigned B+ issue-level ratings to the company's $30 million revolving credit facility due 2019 and $230 million first-lien term loan due 2021. The recovery rating on this debt is 2.

S&P also assigned a B- issue level rating to the company's $85 million second-lien term loan due 2022 with a 5 recovery rating.

Tensar said it will use proceeds from the term loans to fund its acquisition by an affiliate of Castle Harlan Inc., a private equity sponsor.

"The ratings on Tensar incorporate our assessment of its 'weak' business risk profile and 'highly leveraged' financial risk profile," S&P credit analyst David Kuntz said in a news release.

The agency said the business risk profile reflects its view of the company’s modest market share in the highly competitive and widely fragmented site-development solutions industry, reliance on a narrow set of products, and exposure to volatile raw material costs.

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