S&P rates QTC Management loan B

Standard & Poor's said it assigned its B corporate credit rating to QTC Management Inc. At the same time, S&P said it assigned a B rating to the company's proposed $15 million first-lien revolving credit facility due in 2011 and $100 million first-lien term loan due in 2012. A recovery rating of 4 was assigned to the first-lien senior secured facilities.

The outlook is stable.

QTC is being acquired by Spectrum Equity Investors and will be financed with a $100 million senior secured first-lien term loan, a $55 million senior secured second-lien term loan, and a significant common equity investment from the sponsor.

S&P said the ratings on QTC reflect the company's narrow operating focus, its heavy reliance on three government agency customers and its aggressive leverage. These factors are partially offset by the company's strong margins and liquidity, its scaleable business model and its established position with several key government agencies.

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