S&P gives B to ASG loans

S&P said it assigned its B corporate credit rating to ASG Technologies Group Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level and 3 recovery ratings to the company's proposed $325 million first-lien credit facilities, which consist of a $300 million first-lien term loan and a $25 million revolver (undrawn at close). The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default.

“The B corporate credit rating reflects the company's small scale and niche focus in a content management and mainframe systems management market with competition from larger and more diversified players including BMC Software, CA Technologies, and IBM. Furthermore, we believe that ASG has limited capability to navigate a technological landscape that is increasingly focused on cloud delivery models,” S&P said in a news release.

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