S&P drops Sourcecorp, rates notes CCC+

Standard & Poor's said it lowered its corporate credit rating on Sourcecorp Inc. to B from B+.

In addition, S&P said it assigned its CCC+ rating to the proposed $125 million senior unsecured note issuance at Corpsource Finance Holdings, LLC, a holding company two levels up from the borrower.

The proceeds from the offering will be used to fund a special dividend to the equity owners of Corpsource Holdings, LLC, the agency said.

The outlook is negative.

According to S&P, the ratings reflect a leveraged financial profile, niche position in the large, fragmented, business process outsourcing market and relatively modest EBITDA base and these factors are partly offset by a material level of recurring revenues, significant barriers to entry and customer switching costs and a diverse customer base.

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