S&P rates Sterling Infosystems B

Standard & Poor's said it assigned a preliminary B corporate credit rating to Sterling Infosystems Inc.

The outlook is stable.

S&P also assigned a preliminary B rating to the company's proposed senior secured credit facilities, which consist of a $160 million first-lien term loan due 2018 and a $20 million revolving credit facility due 2017. The preliminary recovery rating is 3, indicating expectation for 50% to 70% recovery.

Pro forma for the proposed acquisition of Acxiom, the ratio of adjusted total debt to EBITDA is 4.5x and will fall to below 4x, according to the agency.

This improvement will likely occur from profit growth as opposed to debt reduction, the agency noted.

"Acquisitions will likely remain a priority over debt reduction or dividends for the foreseeable future," S&P analyst Linda Phelps said in a statement.

"We believe meaningful credit ratio improvement would only be temporary, given the company's aggressive growth strategy and the involvement of a financial sponsor in the company's ownership structure."

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