S&P: Creative Circle on positive watch

Standard & Poor’s said it placed the ratings on Creative Circle LLC on CreditWatch with positive implications.

The ratings on positive watch include the company’s B corporate credit rating, B+ issue-level rating with a recovery rating of 2 on its first-lien term loan and revolving credit facility and CCC+ rating with a recovery rating of 6 on its second-lien term loan.

The 2 recovery rating indicates 70% to 90% expected default recovery and the 6 recovery rating indicates 0 to 10% expected default recovery.

The positive watch follows news that On Assignment signed a definitive agreement to acquire Creative Circle, S&P said.

The combined company will likely be rated higher than Creative Circle on a stand-alone basis, the agency said.

S&P said it expects that Creative Circle’s debt will be repaid when the transaction closes in June 2015.

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