S&P rates Mergermarket Midco B

Standard & Poor’s said it assigned a B long-term corporate credit rating to Mergermarket Midco 2 Ltd., the parent of MergerMarket USA, Inc.

The agency also said it affirmed the B rating on the U.S dollar-equivalent £216.6 million first-lien term loan and the $40 million equivalent multi-currency five-year revolving credit facility issued by MergerMarket USA and guaranteed by Mergermarket Midco.

The recovery rating on these loans is 3, reflecting 50% to 70% expected default recovery.

The agency also said it affirmed the CCC+ rating on the U.S dollar-equivalent £73.6 million second-lien term loan issued by MergerMarket USA and guaranteed by Mergermarket Midco. The recovery rating on this loan is 6, reflecting 0 to 10% expected default recovery.

S&P also said it withdrew the B long-term corporate credit rating on MergerMarket USA.

The outlook is stable.

The ratings primarily reflect the group’s weak business risk profile, which is characterized by its small scale and vulnerability to changes in the competitive landscape, S&P said.

The group’s business risk profile also is based on the group’s reliance on two key products, MergerMarket and Debtwire, the agency said.

The ratings also consider the group’s leadership in the niche markets of merger and acquisition news, credit news and intelligence services, S&P said.

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