S&P rates IHS Markit, notes, loan BB+

S&P said it assigned its BB+ corporate credit rating to IHS Markit Ltd.

The outlook is stable.

At the same time, the agency assigned its BB+ issue-level rating and 3 recovery rating to the company's $743 million unsecured notes due 2022 as well as its $1,206,000,000 term loan and $1.85 billion revolving credit facility, each due 2021. The 3 recovery rating indicates an expectation for meaningful recovery (50% to 70%, in the upper half of the range) in the event of payment default.

Markit Group Holdings Ltd., is the borrower of the company's bank debt and $500 million unsecured notes (unrated). S&P will withdraw its ratings on IHS Inc. and its debt.

"The corporate credit rating reflects our view of IHS Markit's acquisitive growth strategy, which we believe could result in releveraging to the 4.0x area from an estimated level of around 2.7x pro forma the merger, but also its good market positions, high recurring revenue, and good track record of operating performance," S&P credit analyst Christian Frank said in a news release.

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