S&P: DigitalGlobe loan BB+

Standard & Poor's said it assigned a BB+ rating and 2 recovery rating to DigitalGlobe Inc.'s proposed $600 million senior secured credit facilities.

The proposed facilities consist of a $500 million term loan due 2018 and a $100 million revolving credit facility due 2016, which is expected to be undrawn at the close of the transaction.

The 2 recovery rating indicates 70% to 90% expected recovery in a default.

The proceeds will be used to refinance the $355 million of outstanding 10½% senior secured notes due 2014 and for general corporate purposes.

The company's BB corporate credit rating is unchanged. This reflects the fact that despite about $145 million increase in outstanding debt, credit measures remain within the range for the rating, given its business risk assessment of the company as fair, S&P said.

The ratings reflect the company's high revenue concentration from a U.S. government contract and disproportionate reliance on two satellites, WorldView-1 and WorldView-2, the agency said.

The ratings also consider that government contracts are not guaranteed until Congress appropriates the funds and that, although unlikely, government agencies may terminate or suspend their contracts at any time and without cause, S&P said.

The company's moderate leverage and strong position as one of only two U.S.-based providers of high-resolution commercial satellite imagery services somewhat temper those risks, the agency said.

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