S&P: Stream Global loan B+

Standard & Poor's said it affirmed the B+ corporate credit rating Stream Global Services Inc.

The agency also said it assigned a B+ rating to its proposed $290 million term loan B credit facility due 2019. The recovery rating is 4, reflecting 30% to 50% expected recovery in a default.

The outlook is stable.

Pro forma for the transaction, leverage will increase to 4.8x from 4.0x as of June 30, S&P said.

The proposed credit facilities will rank pari passu as first-lien debt. The proceeds will be used refinance all of its outstanding 11¼% notes due 2014, the ABL facility and a holding company pay-in-kind sponsor note due 2013.

The ratings reflect Stream's technology-sector client concentration, S&P said, as well as its modest market share within the fragmented and moderately capital-intensive customer care/call center outsourcing services sector.

These factors are offset by the company's growing presence in low-cost geographical areas and attractive call center outsourcing industry growth prospects, the agency said.

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