S&P downgrades USIC

Standard & Poor’s said it affirmed the B corporate credit rating on USIC Holdings Inc.

The agency also said it lowered the ratings on the company’s senior secured revolving credit facility and first-lien term loan to B from B+ and revised the recovery ratings on the debt to 3 from 2.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company’s senior secured second-lien term loan.

The 6 recovery rating on the second-lien loan is unchanged, indicating 0 to 10% expected default recovery.

The outlook is stable.

The agency said it lowered the estimate of USIC’s enterprise value in the recovery analysis to reflect the lowered assumptions for the company’s profitability.

The company’s EBITDA margins have declined because of the greater-than-expected level of damage expenses it experienced in 2015, S&P said.

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