S&P rates ACA loan B+, notes B-

Standard & Poor's said it assigned its B- corporate credit rating to ACA Holdings LLC.

The outlook is stable.

ACA Holdings is the holding company for My Alarm Center LLC.

At the same time, the agency assigned its B+ issue-level and 1 recovery ratings to the company's $30 million revolving credit facility due 2020, which has a first-priority lien. The 1 recovery rating indicates an expectation for very high (90-100%) recovery in the event of a payment default.

S&P also assigned its B- issue-level and 4 recovery ratings to the company's $265 million senior secured notes due 2020. The 4 recovery rating indicates an expectation for average (30%-50%, lower half of the range) recovery in the event of a payment default.

"Our rating on ACA Holdings LLC reflects our view of the company's small market share in an intensely competitive and fragmented industry, in which there are high levels of attrition and alarm monitoring services are largely undifferentiated," S&P credit analyst Kenneth Fleming said in a news release.

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