Research Update: Granite Acquisition Inc. Outlook Revised To Positive On Potential Substantial Deleveraging; 'B+' Rating Affirmed

Portsmouth, N.H.-based Granite Acquisition Inc. plans to sell its project financed U.K. portfolio, in which net asset sale proceeds must be applied to repay existing corporate debt. Current financial performance remains as expected, driven by highly contracted revenues, and very high leverage. We revised the outlook to positive from stable and affirmed the 'B+' issuer credit rating. We also affirmed our 'B+' issue-level rating on Granite Acquisition's $1.25 billion first-lien term B loan due 2021, $225 million revolving credit facility due 2021, and $180 million first-lien term C loan due 2021. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery of principal if a payment default occurs. We also affirmed our 'B-' issue-level rating

...- Portsmouth, N.H.-based Granite Acquisition Inc. plans to sell its project financed U.K. portfolio, in which net asset sale proceeds must be applied to repay existing corporate debt. - Current financial performance remains as expected, driven by highly contracted revenues, and very high leverage. - We revised the outlook to positive from stable and affirmed the 'B+' issuer credit rating. - We also affirmed our 'B+' issue-level rating on Granite Acquisition's $1.25 billion first-lien term B loan due 2021, $225 million revolving credit facility due 2021, and $180 million first-lien term C loan due 2021. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery of principal if a payment default occurs. - We also affirmed our 'B-' issue-level rating on Granite's $260 million second-lien term loan due 2022. The recovery rating remains '6', indicating our expectation for negligible (0%-10% rounded estimate: 0%) recovery in a default. - The...

Research Update