S&P rates STG-Fairway B

S&P said it assigned a B corporate credit rating to STG-Fairway Holdings LLC, doing business as First Advantage Corp.

The outlook is stable.

S&P also said it affirmed the B corporate credit rating on subsidiary STG-Fairway Acquisitions Inc., the holder of the company's debt.

STG-Fairway Holdings LLC is the guarantor of the debt, the agency explained.

S&P also said it affirmed the rating of B+ on the company's first-lien credit facility, which consist of a $485 million term loan due 2022 with $400 million currently outstanding and $50 million revolving credit facility due 2020.

The recovery rating remains at 2, indicating 70% to 90% expected default recovery.

S&P also said it affirmed the rating at CCC+ on the company's second-lien term loan of $150 million. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The ratings reflect an expectation that the company's credit metrics will improve in 2016 as a result of the data center and platform migration initiatives in 2015, the agency said.

S&P also said it expects client attrition, which began in 2015 as a result of the platform migration, to continue into early 2016 with normalized revenue growth resuming in the back half of the year.

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