OREANDA-NEWS. S&P Global Ratings today said it affirmed its 'B-' corporate credit rating on Merrimack, N. H.-based CAMP International Holding Co. The outlook is stable.

At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed $529 million first-lien term loan and $40 million first-lien revolver. The '3' recovery rating indicates our expectation for meaningful (50% to 70%; higher end of the range) recovery for lenders in the event of a payment default. We also assigned our 'CCC' issue-level rating and '6' recovery rating to its $188 million second-lien term loan. The '6' recovery rating indicates our expectation for negligible (0% to 10%) recovery for lenders in the event of a payment default.

"The rating affirmation reflects CAMP's ability to absorb the additional cash interest payments under the new capital structure without meaningfully impairing its financial risk profile," said S&P Global Ratings credit analyst Kenneth Fleming.

It also reflects our expectation for continued growth in EBITDA based on recent acquisitions and a new long-term exclusive contract with business jet manufacturer Gulfstream, which should enable CAMP to delever over time.

The stable outlook reflects our view that the company's recurring and predictable revenue base should result in sufficient cash flow from operations to meet its debt service payments and reduce leverage over time primarily through EBITDA expansion.