S&P assigns CCC+ to STG-Fairway loan

Standard & Poor's said it assigned a preliminary CCC+ debt rating to STG-Fairway Acquisitions Inc.'s (doing business as First Advantage Corp.) proposed $125 million second-lien secured term loan due 2019. At the same time, S&P assigned a preliminary recovery rating of 6, indicating an expectation for negligible (0% to 10%) recovery for second-lien secured lenders in the event of a payment default.

The preliminary B corporate credit rating on STG-Fairway Acquisitions Inc. remains unchanged. The outlook is stable.

The preliminary ratings on First Advantage reflect S&P's assessment that the company's business risk profile will remain "vulnerable" because the company has a narrow business focus in a highly fragmented industry with intense pricing pressure. The preliminary ratings also reflect S&P's assessment that the company's financial risk profile is "highly leveraged."

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