S&P rates new Harland loan BB-

S&P said it affirmed the B+ corporate credit rating on Harland Clarke Holdings Corp.

The outlook remains stable.

The agency also said it affirmed the BB- rating and 2 recovery rating on the company's senior secured first-lien debt, which consists of a $750 million first-lien term loan due May 2018, $600 million first-lien term loan due August 2019, $270 million senior secured notes due Aug. 2018 and $275 million senior secured notes due March 2020.

The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it affirmed the B- rating on the company’s senior unsecured fixed-rate notes due March 2021. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The agency also said it assigned a BB- rating and 2 recovery rating to the company's proposed $800 million first-lien senior secured term loan due December 2019.

The ratings are based on the company's weak business risk profile with structural pressures on Harland’s two primary businesses – the Harland Clarke segment and the Valassis segment, S&P said.

The ratings also reflect the company's limited organic growth opportunities, the agency said.

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