S&P raises NEWAsurion, subsidiaries

S&P said it raised its long-term issuer credit rating on NEWAsurion Corp., Asurion LLC and Lonestar Intermediate Super Holdings LLC to B+ from B.

The outlook is stable.

At the same time, the agency upgraded its senior secured debt ratings on Asurion’s senior secured facilities, consisting of a $190 million first-lien revolver, $1.21 billion first-lien term loan B-2, $2.65 billion first-lien term loan B-4 and $1.4 billion first-lien term loan B-5, to BB- from B+.

S&P also raised its debt ratings on Asurion’s $2.15 billion second-lien term loan and Lonestar’s $550 million senior unsecured term loan to B- from CCC+. The recovery ratings of 2 on Asurion’s senior secured facilities and 6 on its second-lien term loan and senior unsecured revolver remain unchanged.

"The upgrades reflect NEWAsurion's continued earnings growth and cash-flow generation resulting in improved credit metrics," S&P credit analyst Neal Freedman said in a news release.

In addition, NEWAsurion's 2016 recapitalization resulted in reduced private-equity ownership of less than 40%, which the agency said it believes will lead to a more-conservative financial policy and an improved and less-volatile overall credit profile relative to peers'.

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