S&P lowers AVSC revolver, rates new loan B

S&P said that it affirmed the B corporate credit rating on AVSC Holding Corp.

The outlook is stable.

The agency also said it lowered the issue rating and recovery rating on the company's existing senior secured revolving credit facility to B from B+ and revised the recovery rating to 3 from 2.

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

S&P also said it assigned a B rating and 3 recovery rating to the company's $980 million senior secured term loan B due 2024.

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

The agency said it expects to withdraw the ratings on the existing first- and second-lien senior secured term loan B when they are repaid.

The actions reflect a view that AVSC's senior secured debt will increase after it refinances its outstanding debt and result in lower recovery of principal for debtholders in the event of a payment default, S&P explained.

The ratings also consider the company's cash flow concentration in the hotel meetings and conferences business, which depends on cyclical business travel, the agency said.

The ratings also take into account the competitive pressure the company faces to increase commissions it pays to venue-hosting hotels, S&P said.

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