S&P rates Misys loans B+, CCC+

Standard & Poor's said it assigned a B long-term corporate credit rating to Magic Newco 2 Sarl, the holding company of Misys Ltd.

The outlook is negative.

S&P also said it assigned a B+ rating to the $1.07 billion-equivalent first-lien bank facilities and $100 million revolving credit facility issued by subsidiaries of Magic Newco 2. The recovery rating is 2, reflecting 70% to 90% expected recovery in a default.

The agency also said it assigned a CCC+ rating to the $625 million second-lien loan issued by subsidiaries of Magic Newco 2. The recovery rating on the loan is 6, indicating 0% to 10% expected recovery in a default.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, S&P said.

There is limited headroom at the current rating level because of Magic Newco 2's high interest burden following the final pricing of the $1.07 billion first-lien bank facilities and $625 million second-lien facility, as well as weaker operating performance than previously forecasted in financial 2012, the agency said.

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