S&P affirms STG-Fairway

S&P said it affirmed its B long-term corporate credit rating on STG-Fairway Holdings LLC (d/b/a First Advantage Corp.) The outlook remains negative.

S&P also affirmed the B+ long-term issue rating on the company's first-lien credit facilities (term loan B due 2022 and revolver due 2020). The recovery ratings remains 2, indicating an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default.

Additionally, S&P affirmed its CCC+ long-term issue ratings on the company's second-lien term loan due 2023. The recovery rating remains 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

“The affirmation reflects our expectation that the company's credit metrics will improve with adjusted leverage declining to the 7x area by the end of the first half of fiscal year ending Dec. 31, 2018, down from the high-7x area as of 2017,” S&P said in a news release.

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