S&P rates Quintiles IMS loans BBB-, notes BB+

S&P said it assigned a BBB- rating to the dollar- and euro-denominated senior secured term loans issued by Quintiles IMS Inc., an operating subsidiary of Quintiles IMS Holdings Inc.

The agency also said it assigned a BB+ issue-level rating to the senior unsecured euro-denominated notes.

S&P also said it affirmed the BBB- corporate credit rating on Quintiles IMS Holdings.

The outlook is stable.

The agency also said it revised the management and governance score on Quintiles IMS Holdings to “fair” from “satisfactory.”

The ratings are unchanged following the incremental debt transaction and recently announced buybacks, S&P said.

While leverage will increase somewhat, the agency said it thinks debt-to-EBITDA will remain about 4x over time.

Free cash flow remains solid at more than $700 million annually, S&P said.

The company also is expected to continue to aggressively repurchase shares and make tuck-in acquisitions rather than pay down debt, the agency said.

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