S&P rates RCS Capital loans B+, B-

Standard & Poor's said it assigned its B+ issuer credit rating on RCS Capital Corp. The outlook is stable.

At the same time, S&P assigned a B+ issue rating on the company's proposed $550 million senior secured first-lien term loan due 2019 and $25 million senior secured first-lien revolving credit facility due 2017 and assigned a B- issue rating on the proposed $150 million senior secured second-lien term loan due 2021.

"The ratings on RCS reflect the firm's aggressive acquisition strategy and financial management, which will result in a considerable debt burden and negative tangible equity," said S&P credit analyst Olga Roman in a news release.

Additionally, S&P said it believes RCS faces significant integration risk as it combines several acquisitions simultaneously.

The firm's variable cost structure and limited balance sheet risk only partially offset these weaknesses, the agency added.

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