S&P gives Sourcecorp, loan B+

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

The outlook is negative.

At the same time, S&P said it rated Sourcecorp's proposed $275 million first-lien senior secured bank facility B+ with a recovery rating of 2.

In addition, the company's proposed $125 million second-lien term loan was rated B- with a recovery rating of 5, the agency said.

The agency noted that the ratings reflect Sourcecorp's leveraged financial profile, niche position in the large, fragmented, business process outsourcing market and lack of sustained EBITDA growth.

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, S&P said.

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