Moody's rates Billing Services loans B1, B3

Moody's Investors Service said it assigned a B1 rating to Billings Services Group North America Inc.'s proposed $100 million first-lien credit facility, a B3 rating to its $55 million second-lien term loan facility due 2013 and a B1 rating to BSG Clearing Solutions GmbH's proposed $105 million first-lien loan facility due 2012. Both companies are operating subsidiaries of Billing Services Group Ltd. The outlook is stable.

Proceeds from the term loans are expected to be used to refinance U.S. and European borrowings incurred in 2005 in connection with a recapitalization and the acquisition of EDS Interoperator Services GmbH.

Moody's said the ratings are supporting by Billing Services' increased customer, geographic and service diversification after the EDS IOS acquisition, leading market positions, solid cash flow and leverage metrics for the ratings category and good prospects for volume growth in European wireless markets.

The key factors constraining the ratings are the continuing shift towards wireless and internet telephony in the North American market, weak financial condition of certain members of its North American customer base and aggressive price competition in the European wireless market, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.