S&P rates AssuredPartners notes CCC+

S&P said it affirmed a B long-term issuer credit rating and B corporate credit rating on AssuredPartners Inc.

The agency also said it affirmed all of the related existing issue-level and recovery ratings on the company's debt.

The outlook is stable.

These actions relate to the launch of deal financing announced in February 2019 that private equity firm GTCR LLC has agreed to acquire a majority stake in AssuredPartners from its current equity sponsor, Apax Partners, S&P said.

The agency also said it assigned CCC+ ratings with a 6 recovery rating to AssuredPartners' proposed $475 million senior unsecured notes due May 2027.

The transaction will primarily be funded by a GTCR equity contribution, cash on its balance sheet and the issuance of $160 million preferred shares, which will be treated as debt.

The stable outlook reflects expectations for enhanced scale with sustained revenue and earnings growth, which will facilitate de-leveraging and modestly stronger credit protection measures through 2020, S&P said.

The rating reflects a belief that, although the proposed incremental financing under private equity sponsor GTCR results in weaker credit metrics, sustained growth in revenue and earnings will result in strengthening cash flow generation, enabling it to carry this increased debt load and de-leverage modestly during the next year, the agency said.

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