S&P rates Information Solutions loan BB+

Standard & Poor's said it assigned a BB corporate credit rating to Information Solutions Co., the surviving corporation after the pending spin-off of the First American Corp.'s financial services businesses. The agency also said it assigned a BB+ rating with recovery rating of 2 to its proposed $850 million senior secured credit facilities. The recovery rating indicates an expectation for 70% to 90% recovery in the event of a default.

The proposed facilities consist of a $500 million revolving credit facility expiring 2012 and a $350 million first-lien term loan due 2016. The company will use the proceeds to refinance existing debt and general corporate purposes, the agency said.

The outlook is positive.

The ratings reflect the company's leadership position, long-term customer relationships and good free cash flow, S&P said.

A dependence on the cyclical mortgage origination business, customer concentration and a limited track record as a stand-alone company offset those factors, the agency said.

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