S&P: Datatel loans B, CCC+

Standard & Poor's said that it affirmed Datatel Inc.'s B corporate credit rating and assigned the proposed $295 million first-lien senior secured credit facility, consisting of a $40 million revolving credit facility and a $255 million first-lien term loan, a preliminary B issue-level rating and 3 recovery rating, indicating the expectations for very high (50%-70%) recovery in the event of payment default.

S&P said it also assigned the proposed $135 million second-lien senior secured credit facility a preliminary CCC+ issue level rating and a 6 recovery rating, indicating the expectation for negligible (10%-30%) recovery.

The outlook is stable.

Datatel's revenues and operating margins are expected to continue to improve modestly over the next few quarters, reflecting its price increases for maintenance revenues and new license sales, S&P said.

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