S&P affirms Tervita

Standard & Poor’s said it affirmed its B- long-term corporate credit rating on Tervita Corp. The outlook is stable.

At the same time, S&P affirmed its B- issue-level rating and 3 recovery rating on the secured notes and its CCC issue-level rating and 6 recovery rating on the company’s subordinated notes. The 3 recovery rating indicates an expectation of meaningful (50%-70%) recovery in a default scenario, while the 6 recovery rating indicates an expectation of negligible (0%-10%) recovery.

“We have revised Tervita’s business risk profile to ‘weak’ from ‘fair’ to reflect our view that the company’s operations, although less volatile than those of other oilfield service companies, faces a competitive landscape that significantly pressures its gross margins,” said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

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