S&P lifts Language Line, rates loans B, CCC+

Standard & Poor's said it raised its ratings, including its corporate credit rating, on Language Line Holdings LLC to B from B-.

The outlook is stable.

At the same time, S&P assigned the company's proposed $565 million secured first-lien credit facility a B issue-level rating, with a recovery rating of 3, indicating an expectation for a meaningful (50%-70%) recovery in the event of a payment default. The secured first-lien credit facility includes a $50 million revolving credit facility and a $515 million first-lien term loan.

S&P also assigned the company's proposed $220 million secured second-lien term loan a CCC+ issue-level rating, with a recovery rating of 6, indicating an expectation for a negligible (0%-10%) recovery in the event of a payment default.

S&P said the upgrade reflects Language Line's increased margin of compliance under its proposed credit agreement with its maximum leverage covenant.

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