S&P rates Hyland loan B, lowers view to stable

Standard & Poor's said it affirmed the B corporate credit rating on Hyland Software Inc. and revised the outlook to stable from positive.

The agency also assigned a B rating and 3 recovery rating to the company's proposed $435 million senior secured first-lien term loan due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The ratings reflect Hyland Software's weak business risk profile, incorporating the company's limited operational scale and relatively modest competitive position compared with that of much larger competitors with significantly more resources in the fragmented enterprise content management industry, said Jacob Schlanger, an S&P analyst.

These factors are partially offset by the company's predictable recurring revenue stream, stemming from high license renewal rates and favorable business segment growth, Schlanger said in a press release.

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