S&P rates Casmar loans B+, B-

S&P said it assigned a B+ long-term issuer ratings to Casmar (Australia) Pty Ltd., SAI Global CIS US GP and SAI Global GP (collectively Casmar), the funding vehicles for Baring Asia Private Equity Fund VI's acquisition of SAI Global.

The outlook is stable.

Baring Asia has acquired 100% ownership of SAI Global through these funding vehicles for a total cost of A$1.33 billion.

The agency also said it assigned a B+ rating and recovery rating of 3 to Casmar's first-lien facilities, which consist of $515 million equivalent term loan due 2023 and $60 million revolving credit facility due 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The revolver is largely undrawn at the close of the transaction.

S&P also said it assigned a B- long-term issue rating and recovery rating of 6 to the company's A$160 million second-lien term loan due 2024. The 6 recovery rating indicates 0 to 10% expected default recovery.

The ratings on Casmar reflects an assessment of SAI Global's leading market position for its risk management services in large global markets and property settlement services in Australia, the agency said.

The ratings also consider its highly diverse customer end-markets, S&P said, and high customer retention rates.

Offsetting these strengths is the company's highly leveraged financial profile under financial sponsor ownership, as well as SAI Global's small size and modest entry barriers in certain services, the agency said.

The ratings also consider the company’s exposure to competitive pressures from larger players and business conditions, S&P said.

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