S&P changes USIC to negative

S&P said it revised its outlook on USIC Holdings Inc. to negative from stable and affirmed its B corporate credit rating.

At the same time, the agency affirmed the B issue-level rating on the company's $85 million revolving credit facility due 2021 and first-lien term loan due 2023, including the proposed $75 million incremental first-lien term loan.

The 3 recovery rating remains, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default.

In addition, S&P affirmed the CCC+ issue-level rating on USIC's $290 million second-lien term loan due 2024. The 6 recovery rating remains, indicating negligible (0%-10%; rounded estimate: 0%) recovery.

“We revised our outlook on USIC to negative because the additional debt it will take on to fund its acquisition of On Target Utility Services will cause its adjusted debt leverage to increase toward the high end of our expectations for the current rating,” S&P said in a news release.

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