S&P trims BakerCorp view to negative

Standard & Poor’s said it revised its outlook on BakerCorp to negative from stable and affirmed the B corporate credit rating on the company.

At the same time, S&P affirmed the B issue-level ratings on BakerCorp International Inc.'s $45 million revolving credit facility due 2018 and its $417.2 million term loan due 2020. The 3 recovery ratings on the debt are unchanged, indicating an expectation of meaningful (50%-70%; higher end of the range) recovery in a default.

In addition, S&P affirmed the CCC+ issue-level rating on BakerCorp’s $240 million senior unsecured notes due 2019. The 6 recovery rating is unchanged, indicating an expectation for negligible (0%-10%) recovery in a default.

“We revised our outlook on BakerCorp because we believe that the company’s leverage could remain in excess of 6.5x through fiscal-year 2017, which ends in January 2017,” said S&P credit analyst Sarah Wyeth in a news release. “The company has been experiencing weaker-than-expected market conditions caused by declining investment in the upstream oil and gas markets.”

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