S&P rates Kronos loans B-, CCC

S&P said it affirmed the B- corporate credit rating on Kronos Inc.

The agency also said it assigned a B- rating and 3 recovery rating to the company’s $2.4 billion first-lien credit facilities, which consist of a $100 million five-year revolving credit facility and $2.3 billion seven-year term loan B.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC rating and 6 recovery rating to the company's $1 billion second-lien term loan. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The company recently announced plans to refinance its existing debt and pay a dividend with the proceeds of new credit facilities, S&P explained.

Despite higher leverage resulting from the recapitalization transaction, the ratings were affirmed based on the company’s improving business prospects, which will enable it to meet considerably higher interest expense and maintain adequate liquidity, S&P said.

The company has a record of consistently growing revenues faster than the broader human capital management (HCM) software industry and market leadership in workforce management, the agency added.

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