S&P rates Medpace, loan B+

Standard & Poor's said it assigned a preliminary B+ corporate credit rating to Medpace Inc., along with a preliminary B+ senior secured debt rating and a preliminary 4 recovery rating to its $335 million senior secured debt facility, which consists of a $50 million senior secured revolver due 2016 and $285 million senior secured term loan due 2017.

The 4 recovery rating indicates 30% to 50% expected recovery in a default, S&P said.

The outlook is stable.

The ratings reflect the company's weak business risk profile, given its position as a small player in the broader market for contract research services, the uncertain demand in the contract-based business and the company's aggressive financial risk profile following its leveraged buyout by financial sponsor CCMP Capital, the agency said.

Medpace's solid niche position in metabolic diseases and oncology and the specialized nature of its services partly mitigate these factors, S&P said.

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