S&P rates Internet Brands loans B+, CCC+

Standard & Poor’s said it assigned a preliminary corporate credit rating of B to Micro Holding Corp. and MH Sub I, LLC, also referred to as Internet Brands.

The outlook is stable.

The agency also said it assigned a preliminary B+ rating to the company’s $75 million senior secured revolving credit facility due 2019 with a preliminary recovery rating of 2, indicating 70% to 90% expected default recovery.

S&P also said it assigned a preliminary B+ rating to the $435 million senior secured term loan B and the $50 million delayed draw term loan B due 2021 with a preliminary recovery rating of 2, indicating 70% to 90% expected default recovery.

The agency also said it assigned a CCC+ rating to the $195 million second-lien loan due 2022 with a preliminary recovery rating of 6, indicating 0 to 10% expected default recovery.

The B preliminary corporate credit rating reflects the company’s relatively small size and risks of continuous change in its businesses, the agency said.

The rating also reflects the company’s highly leveraged financial risk profile, resulting from the increased debt in the capital structure due to an acquisition, S&P said.

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