S&P rates Deltek loan CCC+

Standard & Poor’s said it affirmed the B corporate credit rating on Deltek Inc.

The agency also said it assigned a B rating and 3 recovery rating to the company’s proposed $840 million senior secured notes due 2022.

S&P also assigned a CCC+ rating and 6 recovery rating to the company’s $350 million second-lien debt.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The proceeds will be used to refinance its current senior notes due 2018 and 2019 and to pay a dividend to current shareholders and pay related transaction fees, S&P said.

The ratings reflect Deltek’s solid position in niche markets and a meaningful recurring revenue base, S&P said.

The stable outlook reflects an expectation that the company’s solid recurring revenue base and disciplined cost management will support consistent profitability and free operating cash flow, the agency said.

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