S&P Global Ratings affirmed USF Holdings LLC's issuer credit rating at B and assigned an issue-level rating of B and a recovery rating of 3 to USF Holdings' proposed senior secured notes.

The ratings outlook is stable, which is reflective of the rating agency's expectation that, despite a fall in margins, USF Holdings will maintain its "above-average" profitability with EBITDA margins around 17%, improve discretionary cash flow-to-debt in 2019 and maintain the company's aggressive financial policies over the next year.

The company intends to issue $600 million in senior secured notes to refinance its existing term loan B, repay borrowings under the asset-based lending revolver borrowings, and pay related fees and expenses.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.