S&P rates MIH Parent loans B-, CCC

Standard & Poor's said it assigned a B- corporate credit rating to MIH Parent Inc., along with a B rating with a recovery rating of 2 to the company's $50 million senior secured revolving credit facility and $490 million first-lien term loan.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it assigned a CCC rating with a 6 recovery rating to the company's $245 million senior secured second-lien term loan. The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is positive.

The proceeds will be used, together with management's rollover and the sponsor's equity contribution, to fund the about $1.1 billion purchase of Mitchell, including refinancing existing debt.

The ratings reflect the company's weak business profile, characterized by its narrow addressable market and modest revenue base, S&P said.

The company's solid market position, highly visible revenue base, high barriers to entry and modest positive free cash flow partially offset these factors, the agency said.

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