S&P rates Vertafore loans CCC+

Standard & Poor's said it affirmed the B corporate credit rating on Vertafore Inc. and assigned a preliminary CCC+ issue-level rating to its proposed $260 million second-lien term loan due 2017. The preliminary 6 recovery rating indicates expectations for 0% to 10% recovery.

The outlook is stable.

Proceeds will be used to refinance the company's unrated $240 unsecured loan provided by TPG capital in conjunction with their purchase of the company in July.

"We affirmed Vertafore's corporate credit rating in conjunction with the announcement of the refinancing of its unsecured loan, as the minor incremental debt does not materially affect leverage or cash flow and our view of the company's business position and operational outlook has not changed," S&P analyst Alfred Bonfantini said in a statement.

The company remains highly leveraged, and while it has a defensible niche market position, healthy operating margins, and high recurring revenue base, a narrow addressable market and overall market position limit the rating, S&P said.

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