S&P rates Focus loans B-

Standard & Poor's said it assigned a B- long-term corporate credit rating to Focus Corp. and a B- rating with a recovery rating of 3 to Focus' proposed six-year C$165 million secured term loan B and five-year C$30 million secured revolving credit facility.

The outlook is stable.

The agency said the ratings on Focus reflect the company's aggressively leveraged balance sheet, highly cyclical business environment, geographic concentration and dependence on nonrecurring project work for revenues. Following the financing, total debt to EBITDA will be 4.9x, assuming the C$30 million revolver is undrawn.

These factors are somewhat offset by the company's strong market position in its Geomatics division, the current robust environment for its services and some measure of capital spending flexibility, S&P said.

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