S&P rates Greeneden loans B

Standard & Poor's said it affirmed its B corporate credit on Greeneden U.S. Holdings II LLC (d/b/a Genesys). The outlook is stable.

At the same time, S&P assigned a B issue-level rating with a recovery rating of 3 to the company's $100 million incremental first-lien term loan B and $200 million first-lien delayed-draw term loan B. The 3 recovery rating indicates an expectation for a meaningful (50% to 70%) recovery of principal in the event of payment default.

S&P also lowered the issue-level ratings on the company's existing revolving credit facility and first-lien term loan to B from B+ and revised the recovery ratings on the senior secured debt to 3 from 2, resulting from the additional senior secured debt in the capital structure.

"The rating reflects Genesys' 'weak' business risk profile characterized by its fairly narrow scope of business, its vulnerability to competition in the fragmented contact center market, acquisition-related integration risks, and 'highly leveraged' financial risk profile," said S&P credit analyst Katarzyna Nolan in a news release.

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