S&P rates TruGreen loan B

S&P said it affirmed its B long-term corporate credit rating on TruGreen LP. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 3 recovery rating to the company's $800 million incremental term loan due 2023. The 3 recovery rating indicates an expectation of meaningful recovery (50%-70%; rounded estimate 50%) in the event of a payment default.

S&P also affirmed its B issue-level rating on the company's $146 million revolving credit facility expiring in 2021. The recovery rating remains 3, although S&P lowered the recovery estimate to 50% from 65%.

“The affirmation reflects our expectation that TruGreen will quickly reduce leverage over the next several quarters, thanks to a significant improvement in operating performance and healthy free cash flow generation, particularly in 2018,” S&P said in a news release.

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