S&P assigns First American Payment, loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to First American Payment Systems LP.

The outlook is stable.

At the same time, the agency said it assigned its B+ issue-level rating and 3 recovery rating to the company's $255 million first-lien credit facility, consisting of a $225 million term loan due 2016 and a $30 million revolving credit facility due 2015.

The company is using the proceeds from the senior secured facility, along with $4.5 million of cash on hand, to refinance its existing debt and to pay a $135 million dividend to its private-equity sponsor and other shareholders, the agency added.

"The ratings on First American reflect the company's modest scale and market share in the highly competitive global payment processing industry," said credit analyst Alfred Bonfantini, "as well as its expectation that significant recurring revenues and diverse sales channels will enable the company to further maintain revenue growth and operating performance in the near term."

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