S&P gives Skype loan B rating

Standard & Poor's said it assigned its B corporate credit rating to Springboard Group Sarl, doing business as Skype.

The outlook is developing.

S&P also assigned a B issue-level rating and 4 recovery rating to Springboard Finance LLC's (Skype US LLC 2's) proposed $630 million credit facility.

"The ratings on Skype reflect our view of rapid technology and market evolution; a short track record at current performance levels; significant uncertainties regarding the timing and outcome of ongoing patent litigations; and aggressive near-term leverage," said S&P credit analyst Naveen Sarma in a news release.

"Somewhat tempering these factors in our opinion are Skype's significant global scale, which provides strong network effects; and healthy free cash flow conversion, which provides for potential deleveraging, given the credit facility's cash flow sweep feature."

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