Moody's rates Vertafore loans B1

Moody's Investors Service said it assigned corporate family and probability of default ratings of B2 to Vertafore, Inc., along with B1 (LGD3, 35%) ratings to the company's proposed $75 million senior secured revolving credit facility due 2015 and $550 million senior secured term loan due 2016.

Vertafore recently announced that TPG Capital would purchase it from Hellman & Friedman and its co-investor JMI Equity for $1.4 billion.

The ratings reflect Vertafore's high initial pro-forma leverage of about 7x and the company's relatively small scale and concentrated business profile as a niche provider of software services for the property and casualty insurance industry, Moody's said.

The rating is supported by the company's leading market position, recurring revenue base driven by a subscription hosting model and high levels of maintenance renewals and solid operating performance, the agency said.

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