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Published on 1/28/2013 in the Prospect News Bank Loan Daily.

S&P rates STG-Fairway loan B

Standard & Poor's said it assigned a preliminary B corporate credit rating STG-Fairway Acquisitions Inc. (doing business as First Advantage Corp.). The outlook is stable.

At the same time, the agency assigned a preliminary B issue rating to the proposed first-lien credit facility, which includes a $40 million revolver due 2018 and a $300 million term loan due 2019. The preliminary recovery rating is 3, which indicates S&P's expectation of meaningful recovery (50% to 70%) for first-lien creditors in the event of a payment default or bankruptcy.

S&P said it is not rating the proposed $125 million second-lien term loan due 2019.

"The ratings on First Advantage reflect our assessment that the company's business risk profile will remain 'vulnerable' because the company has a narrow business focus in a highly fragmented industry with intense pricing pressure," said S&P credit analyst Brian Milligan in a news release.


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