S&P rates Comsys loan CCC+

Standard & Poor's said it assigned a CCC+ rating with a recovery rating of 5 to Comsys IT Partners Inc.'s $100 million junior secured term loan due 2010 and affirmed the company's B corporate credit rating.

The outlook is negative.

Transaction proceeds will be used to refinance the company's debt, which was incurred in 2004 as part of the September 2004 acquisition of competitor Venturi Partners Inc. Comsys' $25 million high-cost 15% pay-in-kind preferred stock will remain in place, the agency said.

The ratings reflect the potential challenges associated with the ongoing integration of Venturi and Comsys' still small size in the competitive and cyclical domestic IT staffing market. These factors are partially offset by Comsys' management's track record of coping with difficult industry conditions, the agency said.

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