S&P rates Vision loans BB-, B-

Standard & Poor's said that it revised the outlook on Vision Solutions Inc. to stable from negative and affirmed the B+ corporate credit rating on the company.

S&P assigned a BB- issue-level rating and a 2 recovery rating to the company's new $255 senior secured credit facilities, consisting of a $15 million revolving credit facility maturing 2015 and a $240 million first-lien term loan due 2016.

The 2 recovery rating indicates the expectations for substantial (70%-90%) recovery in the event of payment default.

S&P assigned a B- rating and a 6 recovery rating to the company's $130 million second-lien term loan maturing 2017. The 6 recovery rating indicates the expectations for negligible (0%-10%) recovery in the event of a payment default.

The company intends to use the proceeds of the term loan to refinance its existing debt, redeem preferred stock and make a distribution to shareholders.

The rating on Vision Solutions reflects the company's limited operational scale, its participation in a highly competitive industry segment with several larger, well-capitalized competitors and the potential for integration challenges related to the July 2010 acquisition of similarly sized Double-Take, the agency said.

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