S&P rates CT Technologies loans B+, CCC+

Standard & Poor's said it assigned a B corporate credit rating to CT Technologies Intermediate Holdings Inc., the holding company of HealthPort Technologies.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating to the company's proposed $250 million first-lien term loan due 2019 and $25 million revolving credit facility due 2018. The 2 recovery rating indicates an expectation for substantial (70% to 90%) recovery in the event of payment default.

S&P also assigned a CCC+ issue-level rating to the proposed $115 million second-lien term loan due 2020. The 6 recovery rating indicates our expectation for negligible (0% to 10%) recovery in the event of payment default.

"The ratings reflect HealthPort's highly leveraged financial risk profile, with adjusted leverage in the high-8x area (treating series A equity as debt), as well as its weak business risk profile, resulting from its niche focus on a highly fragmented market with regulated pricing," S&P credit analyst Christian Frank said in a news release.

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