S&P lifts AqGen loan to B+

S&P said it affirmed the B corporate credit rating on AqGen Ascensus Inc.

The outlook is stable.

The agency also said it raised the rating on the company's first-lien credit facilities, including a $50 million revolving facility due in 2020, $400 million term loan due in 2022 and $25 million delayed-draw term loan to B+ from B.

S&P also said it revised the recovery rating to 2 from 3, indicating 70% to 90% expected default recovery.

The agency also said it affirmed the CCC+ rating on the company's $170 million second-lien term loan. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

S&P also said it lowered the business risk profile assessment for the company based on slower-than-anticipated revenue growth, as well as one-time client attrition from its acquired ExpertPlan portfolios.

The agency also said it believes the company has higher revenue volatility because 30% of its revenues are generated from assets under administration as fee revenue will be tied to financial market volatility.

Still, the company has good operating margins and generates healthy free operating cash flow, S&P said.

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