S&P rates Digital Room loan B-

S&P said it assigned a B- corporate credit rating to Digital Room Holdings Inc.

The outlook is stable.

The agency also said it assigned a B- rating and 3 recovery rating to the company's senior secured first-lien credit facility, which comprises a $25 million revolving credit facility due 2023 and $171.2 million term loan due 2024.

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

S&P also said it assigned a CCC rating and 6 recovery rating to the company's senior secured second-lien credit facility, which comprises a $57.1 million term loan due 2025.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The ratings reflect the company's high adjusted debt leverage, niche product focus, participation in a highly fragmented print industry, financial sponsor ownership and aggressive financial policy, S&P said.

These factors are somewhat offset by the company's growing scale and capabilities in the short-run web-to-print (W2P) segment, good repeat customer base, average order value, operating performance, healthy EBITDA margins and relatively low capital expenditure requirements, the agency said.

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