S&P lifts On Assignment view to positive

Standard & Poor's said it revised the outlook on On Assignment Inc. to positive from stable.

The agency also said it affirmed all existing ratings on the company, including its BB- corporate credit rating.

S&P also said it assigned a BB- rating to the company's $500 million senior secured credit facility with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The facility consists of a $100 million term loan A due 2018, a $275 million term loan B due 2020 and a $125 million revolver due 2018.

The proceeds will be used to refinance the company's existing credit facility. The transaction will extend maturities and reduce cash interest expense.

The outlook revision reflects an expectation that the business outlook will remain favorable, at least over the next couple of years, S&P said.

That should result in a continued reduction in debt leverage despite the company's active acquisition orientation, the agency said.

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