S&P rates Sungard DIP loan BB-

S&P said it assigned a BB- rating to the $100 million debtor-in-possession delayed draw term loan provided to Sungard Availability Services Capital Inc.

Sungard AS is an information technology outsourced disaster recovery service provider that briefly operated under the protection of Ch. 11 of the U.S. Bankruptcy Code following a pre-negotiated filing May 1, S&P explained.

The BB- rating primarily reflects a view of the credit risk borne by the DIP term loan lenders and is not indicative of any ratings that we may assign to exit facilities or the reorganized firm after bankruptcy, the agency said.

The DIP term loan will be converted to an exit term loan at emergence, S&P said.

The ratings also consider the company's ability to meet its financial requirements during bankruptcy through the debtor credit profile assessment, the prospects for full repayment through the company's reorganization and emergence from Ch. 11 and potential for full repayment in a liquidation scenario, S&P said.

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