S&P: Connolly loans B, CCC+

Standard & Poor's said it affirmed the B corporate credit rating on Connolly LLC and assigned a B corporate credit rating to Connolly Corp.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed first-lien senior secured credit facilities, which consist of a $810 million term loan due 2021 and $75 million revolving credit facility due 2019. The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company's proposed $265 million second-lien term loan due 2022. The 6 recovery rating indicates 0 to 10% expected default recovery.

The proceeds will be used to refinance existing debt and fund the acquisition of iHealth Technologies Inc.

Despite the forecast for credit metrics to materially deteriorate over the next year, S&P said it believes the company will support the heavy debt load as the combined company will offer both pre-pay and post-pay audit recovery services to an expanded and more diversified customer base.

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