PetVet Care Centers LLC's Incremental Senior Secured Term Loan Rated 'B' (Recovery Rating: '3')


TORONTO (S&P Global Ratings) March 15, 2019--S&P Global Ratings today assigned 
its 'B' issue-level rating and '3' recovery rating to PetVet Care Centers LLC's
 incremental senior secured term loan. The '3' recovery rating indicates our 
expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the 
event of a payment default. We expect that the company's incremental facility 
will be $250 million maturing in 2025 following the proposed $125 million 
add-on. Our '3' recovery rating on the company's senior secured first-lien 
facilities and '6' recovery rating on its second-lien debt are unaffected by 
the proposed add-on. PetVet intends to use the proceeds from the add-on for 
acquisitions and to repay its outstanding revolver borrowings.

Our 'B' issuer credit rating on Romulus Intermediate Holdings 2 Inc. (the 
parent of PetVet Care Centers LLC) reflects the company's top-three market 
position, but narrow operating focus, in the specialized and highly fragmented 
veterinary practices market. The rating also reflects our expectation that 
Romulus will remain acquisitive and that its adjusted leverage will remain 
high. The company's leverage has been creeping up and we now expect it to be 
in the 8x to mid-8x range.
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