S&P rates Safety-Kleen, loan BB-

Standard & Poor's said it assigned its BB- corporate credit rating and stable outlook to Safety-Kleen Systems Inc.

At the same time, S&P said it assigned its BB- bank loan rating and recovery rating of 3 to Safety-Kleen's $395 million senior secured credit facility, which will consist of a $100 million revolving credit facility due 2012, a $65 million letter of credit facility due 2013 and a $230 million term loan B due 2013.

The agency added that the ratings on Safety-Kleen reflect its aggressive capital structure without the benefit of a track record regarding financial policies, its relatively low profitability and pricing and volumes that are somewhat vulnerable to industry cycles.

These factors are partially mitigated by the company's leading market positions in niche markets and its diversified customer base, S&P said.

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