Moody's rates SS&C loan B2, notes Caa1

Moody's Investors Service said it assigned a B2 rating to SS&C Technologies Inc.'s senior secured credit facilities and a Caa1 rating to its $205 million senior subordinated notes. Moody's said it also assigned an SGL-2 speculative grade liquidity rating and B2 corporate family rating.

The outlook is stable.

Proceeds from the loan and notes will be used to partially finance the $942 million leveraged buyout of SS&C.

Moody's said the ratings reflect SS&C's high debt leverage, the modest size of its approximately $200 million pro forma revenue base, its limited track record as a company of its current size and business composition and a competitive financial software landscape.

However, the rating also reflects the company's stability provided by recurring revenues from long-term software maintenance and outsourcing service contracts, maintenance contract revenue retention rates in excess of 90%, modest single client revenue concentration, high operating margins and low requirements for working capital or capital expenditures, the agency said.

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