S&P rates TeamSystem notes B

Standard & Poor's said it assigned a B long-term corporate credit rating to TeamSystem Holding Spa.

The outlook is stable.

The agency also said it assigned a B rating to TeamSystem's €300 million senior secured fixed-rate notes due 2020. The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

The ratings reflect TeamSystem's highly leveraged financial risk profile, S&P said.

TeamSystem's private equity ownership has led the group to adopt aggressive financial policies, including on acquisitions and cash dividends, the agency said.

The company has a fair business risk profile as it operates in the fragmented Italian small- and midsize-enterprise market and has smaller operations and weaker geographic diversity than larger business services providers, S&P said.

These weaknesses are partially offset by its position as a market leader in Italy with a broad and diverse client base, the agency said.

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