S&P: MModal loans BB-, notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to MModal Inc. The outlook is stable.

The agency also assigned BB- issue-level ratings and 2 recovery ratings to MModal's proposed $520 million senior secured credit facilities, which consist of a $75 million revolving credit facility due 2017 and a $445 million term loan due 2019. The 2 recovery rating indicates expectations for substantial recovery in the event of payment default.

Additionally, the agency assigned a B- issue-level rating and a 6 recovery rating to the company's proposed $250 million senior unsecured notes due 2020. The 6 recovery rating indicates expectations for negligible recovery in the event of payment default.

"The ratings on MModal reflect our view that an aggressive financial profile following its LBO is partly offset by an increasing adoption of technology for clinical documentation, a recurring revenue base, high renewal rates and a diversified customer base," said S&P credit analyst David Tsui in a news release.

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