S&P: Web.com rates planned loans B, CCC+

Standard & Poor's said it assigned its preliminary B corporate credit rating to Web.com Group Inc. The outlook is stable.

At the same time, S&P said it assigned the company's proposed $600 million first-lien term loan and $50 million revolver a preliminary issue-level rating of B, with a preliminary recovery rating of 3, indicating the agency's expectation of meaningful recovery for debtholders in the event of a payment default.

S&P said it assigned the company's proposed $150 million second-lien term loan a preliminary issue-level rating of CCC+, with a preliminary recovery rating of 6, indicating the agency's expectation of negligible recovery for debtholders in the event of a payment default.

"The rating and outlook reflect our expectation that Web.com will generate positive discretionary cash flow and steadily reduce debt, absent a leveraging transaction," said S&P credit analyst Chris Valentine in a news release.

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