S&P: Cunningham loans B, B-

Standard & Poor's said it assigned its B long-term counterparty credit rating to Cunningham Lindsey Group Ltd. following the announcement of private-equity sponsor CVC Capital Partners' acquisition of a majority ownership interest in the company.

At the same time, the agency said it assigned a B issue-level rating with a 3 recovery rating to the company's proposed first-lien facilities consisting of a $395 million term loan and a $140 million revolver. The 3 recovery rating indicates an expectation for a meaningful recovery for lenders in the event of a payment default.

The agency also assigned a B- debt rating with a 5 recovery rating to the company's proposed $125 million second-lien term loan. The 5 recovery rating indicates an expectation of modest recovery of principal in the event of a default. The outlook is stable.

"Our counterparty credit rating on CLGL, which owns various subsidiaries across broad regions, reflects the company's marginal liquidity and limited financial flexibility resulting from its highly leveraged capital structure with a high amount of intangible assets," said S&P credit analyst Polina Chernyak in a news release.

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