S&P: First American loan B+

Standard & Poor's said it assigned B+ ratings to First American Payment System LP's proposed $40 million first-lien incremental term loan B due 2016.

The rating is equal to the company's B+ corporate credit rating and is the same as the rating on the company's existing first-lien debt.

S&P also said it assigned a 3 recovery rating to the incremental term loan B, indicating 50% to 70% expected recovery in a default.

This recovery rating is the same as the recovery rating assigned to the existing first-lien credit facilities.

The corporate credit rating and outlook on the company are unchanged by the additional debt, the agency said. The company's pro forma adjusted leverage is estimated at about 5x, an increase from about 4.3x as of Sept. 30, 2011, S&P said.

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