S&P trims, assigns Focus loan B+

S&P said it lowered its long-term issuer credit rating on Focus Financial Partners Inc. to B+ from BB-. At the same time, the agency assigned a B+ issue rating to its proposed term loan and lowered the issue rating on its outstanding term loans to B+ from BB-. The recovery rating on Focus's secured debt is 3, indicating that lenders can expect meaningful recovery if the company defaults (about 50%).

The loan is being issued for Clayton, Dubilier & Rice LLC’s pending acquisition of Focus.

“We lowered our rating on Focus to B+ from BB-, reflecting our expectation that it will maintain debt to EBITDA above 5x over the next 12 months. The rating also reflects the company's greater scale compared to peers, preferred interest in earnings of its partner firms, and solid EBITDA interest coverage,” S&P said in a statement.

The outlook is stable.

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