S&P: Deltek on watch

Standard & Poor's said it placed its BB- corporate credit rating on Deltek Inc. on CreditWatch with negative implications due to the announcement of its prospective leveraged buyout by private-equity firm Thoma Bravo LLC.

The agency said it did not place the company's existing senior secured credit facilities on CreditWatch as it expects the amount outstanding on the existing credit facilities to be fully repaid with proceeds from the proposed new senior secured debt facilities or new equity investment.

"Given this potential significant increase in leverage and our current weak business risk profile assessment for Deltek, we expect to lower the company's corporate credit rating by at least one notch, depending on the final capital structure at the close of the transaction," said S&P credit analyst Alfred Bonfantini in a news release.

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