Moody's ups Lender Processing

Moody's Investors Service said it raised Lender Processing Services Inc.'s speculative grade liquidity rating to SGL-1 from SGL-2, reflecting the company's good liquidity profile.

The company has corporate family and probability of default ratings of Ba1, Baa3 ratings on its $700 million term loan A, $485 million term loan B and $140 million revolving credit facility and a Ba2 rating on its $375 million of senior unsecured notes.

The outlook is stable.

The revision of the liquidity rating reflects the company's continued strong cash flow generation through the economic recession as the company benefited from the spike in U.S. mortgage foreclosure activity, refinancing activity resulting from lower interest rates and increased demand for analytical services related to loss mitigation and loan modifications, Moody's said.

Moody's said it expects the company's free cash flow to be about the same level for the next 12 months, which will allow the company to fund its capital expenditures and working capital needs for at least the next year.

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