S&P: Kronos loans B, CCC+

Standard & Poor's said it affirmed the B corporate credit rating on Kronos Inc.

The outlook is stable.

The agency also assigned a preliminary B bank loan rating with a recovery rating of 3 to the company's extended and incremental first-lien credit facilities.

S&P also assigned preliminary a CCC+ bank loan rating with a recovery rating of 6 to the extended second-lien credit facilities.

Kronos recently announced plans for a $551 million dividend to shareholders, which it will fund using cash on hand and the additional credit facility.

The additional debt financing for the shareholder distribution will substantially increase the company's leverage, although ongoing predictable earnings and strong cash flows should lower this ratio gradually, S&P said.

The rating reflects the company's focus on workforce management, a niche segment in the $6.4 billion human capital management market, S&P said, and high leverage.

Sufficient free cash flow and fairly predictable revenue generation partially offset those factors, the agency said.

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