S&P ups some First American Payment loans

Standard & Poor’s said it affirmed its B corporate credit rating on First American Payment Systems LP. The outlook remains stable.

At the same time, S&P raised the issue-level ratings on the company’s first-lien credit facilities to B+ from B and revised the recovery ratings to 2 from 3 as a result of the recent debt reduction. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%) in a payment default scenario.

S&P said the CCC+ issue-level and 6 recovery ratings on the company’s second-lien credit facility remain unchanged. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%) in a payment default scenario.

“The stable outlook reflects our expectation that FAPS’ diversified sales channels and largely fixed-cost structure will allow it to maintain fairly stable revenues and profitability levels over the coming year,” said S&P credit analyst Jenny Chang in a news release.

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