TORONTO (S&P Global Ratings) March 24, 2022--S&P Global Ratings raised its issue-level rating on High Liner Foods Inc.'s secured term loan B to 'B+' from 'B' and revised its recovery rating on the term loan to '2' from '3' based on improved recovery prospects. According to the credit agreement, High Liner is required to make mandatory prepayments based on previous years' excess cash flows. As a result, through 2020 and 2021, the company has repaid about US$45 million on the term loan, which largely reflects excess cash flow payments from 2019 and 2020. The principal outstanding is now US$255 million compared with the original US$300 million; we view the term loan repayment as a meaningful reduction of total debt outstanding.
