S&P ups Altegrity, rates notes CCC+

Standard & Poor's said it raised the corporate credit rating on Altegrity Inc. to B from B- and the rating on its $1.48 billion senior secured credit facility, including the proposed $550 million add-on term loan due 2015, to B+ from B.

The agency also said it assigned a CCC+ issue rating to the proposed $210 million 12% senior unsecured private placement notes due 2015 and raised the rating on the existing $290 million senior unsecured notes due 2015 and $150 million senior subordinated notes due 2016 to CCC+ from CCC.

The recovery rating on the senior secured bank credit facility is 2, indicating an expectation of 70% to 90% recovery in a default. The recovery rating on all of the senior unsecured notes and the senior subordinated notes is 6, indicating an expectation of 0% to 10% recovery in the event of default.

The ratings were removed from CreditWatch developing. The outlook is stable.

The action reflects a belief that the acquisition of Kroll Inc. will increase covenant cushion, modestly improve the company's weak credit measures and potentially result in cost synergies, S&P said.

The ratings continue to reflect the high concentration with the U.S. federal government office of personnel management background investigations business, weak credit measures, aggressive financial policy, technology risk and continued weakness expected at the commercial pre-employment screening business, the agency said.

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