S&P assigns B+ to U.S. Security loan

S&P said it affirmed its B corporate credit rating on U.S. Security Associates Holdings Inc. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating on the company’s first-lien facilities, including a $75 million revolving credit facility due 2021 and $450 million term loan due 2023. The 2 recovery rating indicates an expectation for substantial (70% to 90%, in the lower half of the range) recovery for secured creditors in the event of a payment default.

“The affirmation reflects our assessment of USS’ continued high financial leverage, narrow business focus, and its mid-tier position in the domestic manned security industry,” said S&P analyst Peter Deluca in a news release. “We also factor in the company’s flexible cost structure, diversified client base, solid client retention track record, and our expectations of gradual deleveraging.”

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