Moody's affirms GSCP

Moody's Investors Service said it affirmed the B1 senior debt ratings of GSCP (NJ), LP, the borrowing entity of GSC Group, following the $100 million upsizing of the company's credit facility to $250 million, which includes a $190 million five-year first-lien term loan and a $60 million four-year revolving credit facility. At closing, GSCP's pro forma total debt will become roughly $200 million, up from a Moody's adjusted debt level of $165 million.

The outlook is stable.

Most of the new proceeds will be used to extinguish $52 million of the company's preferred partnership interest. The agency said that given the partial debt treatment of the preferred partnership interest, the incremental increase in GSCP's overall adjusted leverage is modest and still consistent with existing ratings.

Moody's said the B1 rating reflects GSCP's strong management team and good competitive position within the alternative investment sector, coupled with a good demand for credit-based strategies as an asset class.

The rating also incorporates a number of risks to GSCP's business and cash flows including high leverage, increasing competition, dependence on key executives and high investor concentrations relative to traditional asset management companies, the agency said.

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