S&P affirms Micro after add-on

S&P said it affirmed the B corporate credit rating on Micro Holding Corp.

The agency also said it affirmed the B rating on the company's senior secured first-lien credit facility 2021, including the proposed $175 million incremental term loan and $150 million delayed draw term loan both due 2021.

The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company's $170 million second-lien term loan due 2022. The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

The outlook is stable.

The business risk profile was revised to fair from weak, reflecting the company's increasing mix of business from software as a service (SaaS) offerings, which consist of software and data services for the auto sector, S&P said, and website design, hosting and marketing services for the health and legal sectors.

The SaaS business generates recurring, subscription-based revenue, which is less volatile than online advertising revenue, the agency said.

The company is expected to continue expanding its market share with small- and mid-sized businesses in its health and legal sectors, S&P said, and increase its share of revenue from the less-volatile SaaS business.

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