S&P rates Evertec B+, loans BB-

Standard & Poor's said it assigned a preliminary B+ corporate credit rating to Evertec Inc. and a preliminary BB- rating with a preliminary recovery rating of 2 to the company's proposed $50 million senior secured revolving credit facility and $350 million term loan B.

The outlook is stable.

The debt proceeds, which the agency said are likely to include $220 million of senior unsecured notes, will be used to finance a carve-out acquisition of Evertec from a subsidiary of Popular Inc. (B/positive/C).

The agency said the rating reflects Evertec's narrow market profile, leveraged financial profile and S&P's view that the company's ownership structure is likely to preclude sustained deleveraging.

Despite its small scale compared to larger U.S. payment processors, Evertec benefits from secular growth trends in debit-card processing and a strong position within the Puerto Rican market, S&P said.

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