S&P lifts Activant Solutions

Standard & Poor's said it raised the corporate credit rating on Activant Solutions Inc. to B from B- and removed the rating from CreditWatch, where it was placed with positive implications on Nov. 2.

The agency also raised the senior secured term loan to B+ from B and $114 million senior subordinated notes to CCC+ from CCC. The 2 recovery rating on the senior secured term loan and the 6 recovery rating on the senior subordinated notes remain unchanged.

The outlook is stable.

S&P said the company recently executed an amendment to its credit agreement, resetting covenants with sufficient headroom and extending the maturity on a portion of its revolver and a portion of its term loan.

"The ratings on Activant reflect some recent recovery in the company's verticals as well as improved headroom in covenants as a result of the recent amendment," S&P analyst Jennifer Pepper said in a statement.

Despite a niche target market, the company's significant amount of recurring revenue and relatively consistent profitability will continue to support the rating, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.