S&P lowers KeyPoint to stable

Standard & Poor’s said it affirmed the B corporate credit rating on KeyPoint Government Solutions Inc.

The outlook was revised to stable from positive.

S&P also said it maintained the B+ rating to the company’s first-lien credit facilities, including a $10 million revolving facility due 2017 and $150 million term loan due 2017.

The recovery rating for the first-lien facilities is 2, which indicates 70% to 90% expected default recovery.

The outlook revision reflects a view that KeyPoint’s margin expansion is about one year behind the prior forecast due to its need to invest in labor, the agency said.

S&P said it believes the company will need to diversify its customer base for a higher rating as it is vulnerable to decisions made by its customers.

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