S&P rates Sum Total Systems loans B+, CCC+

Standard & Poor's said it assigned a B corporate credit rating to Amber Holding Inc., along with a B+ rating to operating company SumTotal Systems Inc.'s $30 million revolving credit facility and $370 million first-lien term loan.

The recovery rating on these issues is 2, indicating 70% to 80% expected recovery in a default.

S&P also said it assigned a CCC+ rating to SumTotal's $140 million second-lien term loan with a recovery rating of 6, indicating 0% to 10% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's weak business risk profile, characterized by its modest overall position in the human capital management software market and its highly leveraged financial risk profile, S&P said.

Offsetting some of these issues is the human capital management market's critical and growing role, the company's rising position in the segment and its highly recurring revenue base, the agency said.

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