S&P rates Rocket Software B+, loans BB, B+

Standard & Poor's said it assigned a B+ corporate credit rating to Rocket Software Inc., along with a BB rating and a 1 recovery rating to its $325 million first-lien facilities, consisting of a $25 million revolver due 2017 and a $300 million term loan due 2018.

The 1 rating indicates 90% to 100% expected recovery in a default.

The agency also said it assigned a B+ rating and a 4 recovery rating to the company's $105 million second-lien facilities due 2019.

The 4 rating indicates 30% to 50% expected recovery in a default.

The outlook is stable.

The proceeds will be used to pay a $260 million dividend to existing shareholders and repay existing debt and liabilities.

The ratings reflect a recurring revenue base, high renewal rates and an entrenched customer base will continue to support consistent operating profitability, S&P said, despite the company's niche market position within a large infrastructure software market.

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