S&P: MRI Software loan B+

Standard & Poor's said it assigned a preliminary B corporate credit rating to MRI Software LLC.

The agency also said it assigned a preliminary B+ rating with a preliminary recovery rating of 2 to the company's proposed $165 million senior secured first-lien credit facilities, comprising a $15 million revolving credit facility due 2019 and a $150 million first-lien term loan due 2021. The 2 preliminary recovery rating indicates 70% to 90% expected default recovery.

The outlook is stable.

The proceeds will be used from the $150 million proposed senior secured first-lien term loan and an unrated proposed $65 million second-lien term loan to fund a $187 million dividend to its financial sponsor and repay existing debt, S&P said.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, the agency said.

The ratings also consider the company's limited scale in the enterprise software industry, niche market focus in the real estate end market and narrow product offerings, S&P said.

These factors are partially offset by the company's low customer concentration risk, the agency said.

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