S&P cuts Institutional Shareholder

S&P said it lowered its corporate credit rating on Institutional Shareholder Services Inc. to B- from B.

The outlook is stable.

The agency also assigned a B- issue-level rating to the company's $340 million first-lien credit facility, comprising a $40 million revolving credit facility due 2022, a $275 million first-lien term loan due 2024 and a $25 million delayed-draw term loan due 2024. The 3 recovery rating indicates an expectation for meaningful (50% to 70%; rounded estimate: 65%) recovery in the event of default.

S&P also assigned a CCC issue-level rating to the company's $110 million second-lien term loan due 2025. The 6 recovery rating indicates an expectation of negligible (0% to 10%, rounded estimate: 0%) recovery.

“The downgrade reflects our view of the company's pro forma adjusted leverage in the low-8x area at the close of the transaction and our view that leverage will remain in the mid- to high-7x area over the next year,” the agency said in a news release.

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