S&P rates Tervita notes CCC+

Standard & Poor's said it assigned its CCC+ issue-level rating and 6 recovery rating to Tervita Corp.'s proposed $290 million senior unsecured notes. The 6 recovery rating indicates an expectation of negligible recovery in the event of a default.

The company will use the proceeds to repay borrowings under its revolving credit facility.

"The ratings on Tervita reflect our view of the company's fair business risk profile and highly leveraged financial risk profile," said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

S&P said the ratings take into account the agency's assessment of the company's high debt leverage due to management's aggressive financial policy, participation in the competitive and cyclical oilfield services market and lack of long-term contracts.

The ratings also incorporate S&P's positive assessment of Tervita's relatively stable operating margins and integrated strategy that provides cross-selling opportunities.

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