S&P rates Solera Parent B-

S&P said it assigned a B- issuer credit rating to Solera Parent Holding LLC.

Solera Parent Holding is the parent company of the Solera group, which includes Solera Holdings Inc., the agency said.

The agency also affirmed the B- issuer credit rating on Solera Holdings and the B and CCC+ issue-level ratings on its secured and unsecured debt, respectively.

The 2 and 5 recovery ratings on the secured and unsecured loans, respectively, are unchanged.

The stable outlook reflects an expectation of revenue growth in the low single-digits over the next 12 months and adequate liquidity, S&P said.

The ratings reflect the company's good position as a risk and asset management software and services provider to the automotive markets, the agency said.

The company has a solid recurring revenue base with predictable transactions and subscription revenue, driven by the stickiness of its software offerings and high switching costs, S&P said.

The company also benefits from fairly diverse customer segments led by insurance providers, collision shops and service, maintenance, and repair facilities, the agency said.

The ratings also consider its niche product focus, acquisitive growth strategy and high-risk tolerance and debt leverage of about 11x as of Dec. 31, 2018, S&P said.

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