S&P affirms GXS, rates loans B+, B-

Standard & Poor's said it affirmed its B corporate credit rating on GXS Worldwide Inc.

At the same time, S&P said it revised its outlook on GXS to stable from negative.

S&P said it also assigned its B+ bank loan rating and 2 recovery rating to the company's proposed $429 million first-lien senior secured bank facility, reflecting its expectation for substantial recovery in the event of a payment default.

The agency added that it assigned its B- bank loan rating and 5 recovery rating to the company's proposed $132 million second-lien senior secured term loan.

According to S&P, the ratings on GXS reflect its declining revenue base, presence in a highly competitive and narrow niche marketplace and high debt leverage while these are only partially offset by a leading market position, limited debt maturities over the intermediate term and our expectation for continued stable EBITDA generation.

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