S&P upgrades CNG Holdings

S&P said it raising the issuer credit rating on CNG Holdings, Inc. to B from CCC+.

The agency also said it assigned an issue rating on CNG's senior secured notes of B with a recovery rating of 4, indicating 35% expected default recovery.

CNG Holdings announced an issuance of $310 million of senior secured notes due 2024 to refinance its existing notes due 2020, successfully extending the company's near-term maturities while paying down some debt with excess cash, S&P said.

CNG has improved its operating performance in recent years by executing on cost savings and has maintained a debt-to-EBITDA ratio of 3x to 4x, the agency said.

The upgrades reflect the successful refinancing of the company's 2020 notes, S&P said, and recent improvement in earnings.

The new $310 million notes due 2024 will pay down the existing $326 million senior secured notes 2020.

The agency said it views the longer maturity profile favorably because it enhances the company's financial flexibility as it continues to shift customers from short-term single pay loans to longer-term installment loans.

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