S&P: MSC Software, loan B+

Standard & Poor's said it assigned a preliminary B+ corporate credit rating on MSC Software Corp., along with a B+ preliminary issue rating with a preliminary recovery rating of 3 to its proposed $235 million senior secured first-lien credit facility, which consists of a $215 million term loan due 2017 and a $20 million revolver due 2016.

The outlook is negative.

The ratings reflect the company's weak business risk profile, characterized by a moderate market position and a small position in the overall product life management industry, S&P said.

The agency also said it considers the company's financial risk profile aggressive, based on pro forma leverage of about 5x.

But, S&P said it anticipates positive growth in 2011 and 2012 based on its position in a growing market.

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