S&P upgrades Deltek loans

Standard & Poor's said it raised its issue-level ratings on Deltek Inc.'s $30 million first-lien revolving credit facility and $200 million first-lien term loan to BB+ from BB.

The agency said it simultaneously revised the recovery ratings on this debt to 1 from 2. The 1 recovery rating indicates an expectation for very high recovery in the event of a payment default, S&P said.

The agency said Deltek has made more than $30 million in voluntary prepayments on its term loan since it first rated the deal in November 2010. The company has also successfully integrated three acquisitions since the last analysis, which has expanded their business both geographically and into new end markets, the S&P said.

These factors lead S&P to believe that the company would be more valuable in a hypothetical default, and the agency said it revised its valuation accordingly.

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