S&P lowers Wall Street Systems view to stable

Standard & Poor's said it revised the outlook on Wall Street Systems Holdings Inc. to stable from positive.

The outlook revision reflects a more leveraged financial profile pro forma for the transaction.

The agency also said it affirmed its B corporate credit rating and assigned a B rating to the company's proposed $335 million first-lien term loan due 2019 and $30 million revolving credit facility due 2017. The 3 recovery rating indicates 50% to 70% expected recovery in a default.

S&P also said it assigned a B- rating to the company's proposed $140 million second-lien term loan due 2020. The 5 recovery rating indicates 10% to 30% expected recovery in a default.

The new facilities will be issued by WSS Delaware Inc., a wholly owned subsidiary of Wall Street Systems Holdings Inc.

The ratings are based on an expectation that all existing debt at Wall Street Systems Holdings will be repaid by the proposed transaction.

The ratings reflect the company's weak business risk profile resulting from its narrow market focus and its revenue exposure to the financial sector and Europe, the agency said.

The ratings also consider its highly leveraged financial profile with pro forma leverage in the low-7x area, S&P said.

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