S&P applies B to Certara, facilities

S&P said it assigned a B corporate credit rating to Certara Holdco Inc.

The outlook is stable.

In addition, the agency assigned a B issue-level rating to Certara's proposed $270 million first-lien credit facilities, which consists of a $20 million revolving credit facility and a $250 million term loan. The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

S&P said the rating reflects Certara’s limited scale and niche focus in the biosimulation and regulatory software and services industries. The agency considers the risk of potential competition from much larger and better funded outsourced pharmaceutical development firms, such as contract research organizations (CROs) to be a limiting factor in the rating as well.

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