S&P rates Wall Street Systems facility B

S&P said it affirmed the B corporate credit rating on Wall Street Systems Holdings Inc. and assigned a B issue-level rating on the company's new senior secured credit facility, which includes a $250 million first-lien term loan due 2024, a €505 million first-lien term loan due 2024 and a $15 million revolver due 2022.

The recovery rating is 3, indicating an expectation for meaningful (50-70%; rounded estimate: 50%) recovery in the event of a payment default.

The outlook is stable.

The company will use proceeds from the transaction to repay the remaining $630 million in existing term loan debt as well as fund a $122 million dividend to shareholders.

The agency said the rating on the company reflects its niche market focus within the fragmented financial technology industry, competition against other large players with significantly more financial resources and its highly leveraged financial risk profile.

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