S&P might lift Focus Financial

S&P said it placed its B+ issuer credit rating on Focus Financial Partners LLC on CreditWatch with positive implications.

In addition, the agency placed the B+ issue rating on the company's first-lien facility and B- issue rating on the second-lien term loan on CreditWatch positive.

The recovery rating on the company's first-lien facility is 4, indicating an expectation for average recovery (45%), and the recovery rating for the second-lien term loan is 6, indicating an expectation for negligible recovery (0%).

S&P said the CreditWatch placements follow the company's projected partial repayment of outstanding debt with proceeds from an IPO and subsequent refinancing of the first-lien term loan.

“We expect that, following the debt repayment, Focus will operate with leverage between 4x and 4.5x during the next 12 months and potentially below 4x during the following 12 months,” the agency said in a news release.

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