S&P lifts Quintiles, rates new loan BBB

Standard & Poor’s said it raised the corporate credit rating on Quintiles Transnational Corp. to BB+ from BB.

The outlook is stable.

S&P also said it assigned a BBB rating and 1 recovery rating to Quintiles’ new securitization facility, consisting of a $275 million term loan and $25 million revolver.

This facility is secured by a first-priority lien on Quintiles’ receivables, the agency said, and is issued by Quintiles Receivables LLC.

S&P also said it raised the rating on Quintiles’ existing senior secured debt to BB+ from BB, reflecting the upgraded corporate credit rating. The 4 recovery rating on this debt is unchanged.

The upgrade is predicated on an increasing confidence in the company’s financial policies, including a belief that Quintiles is unlikely to undertake significant share repurchases or make large one-time dividend payments as a public, non-controlled company, the agency said.

Based on this expectation, S&P said it now expects leverage to average about 3x over time.

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