S&P upgrades MCS Group first-lien debt

S&P said it affirmed the corporate credit rating of B on MCS Group Holdings LLC and revised the outlook to stable from negative.

The agency also said it raised the rating to B+ from B on the company's first-lien credit facilities, including a $20 million revolving facility due 2018 and $340 million term loan due 2019.

S&P also said it revised the recovery ratings on the first-lien facilities to 2, indicating 70% to 90% expected default recovery, from 3.

The revised outlook reflects the company’s improving financial condition from organic growth, new clients and tuck-in acquisitions, the agency said, along with the termination of unprofitable service agreements last year.

S&P also said it expects credit metrics to continue to strengthen over the next year as the company continues to amortize the term loan, increases revenue and EBITDA and focuses on building a more diversified business around its core portfolio services.

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