S&P rates Trader loan B

S&P said it assigned a B issue-level rating and 3 recovery rating to Trader Corp.’s new C$200 million first-lien loan.

The recovery rating reflects an expectation of meaningful recovery (50%-70%; rounded estimate 50%) in a default scenario.

On Oct. 2 Trader refinanced its C$200 million second-lien debt into a new C$200 million first-lien debt facility. The agency withdrew the CCC+ issue-level rating and 6 recovery rating on the second-lien facility.

The agency also affirmed the B rating with a 3 recovery rating on the existing U.S. dollar first-lien debt and the B long-term issuer credit rating on Trader.

The outlook is stable.

S&P said the affirmation reflects the leverage-neutral transaction because the first-lien facility will repay the second-lien debt.

The agency said it views the action as credit positive because it lowers Trader's interest rate by about 425 basis points.

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