S&P rates Microsemi loan BB+

Standard & Poor's said it assigned a preliminary BB- corporate credit rating to Microsemi Corp., along with a preliminary BB+ rating and preliminary recovery rating of 1, indicating 90% to 100% expected recovery in a default, to its proposed $425 million first-lien senior secured credit facility. The facility includes a $50 million revolving credit facility and $375 million term loan.

The outlook is stable.

S&P said it expects Microsemi's good niche position as a provider of defense, security, aerospace and industrial applications-focused analog and mixed signal semiconductor components to result in continued modest revenue and profitability growth driven by sustained end-market demand and manufacturing facility closings.

The agency also said it expects the company will work to reduce leverage through debt reduction as a buffer against industry cyclicality.

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