S&P rates RedPrairie loan B+

Standard & Poor's said it assigned a B+ rating to RedPrairie Corp.'s proposed $380 million senior secured credit facility, along with a 3 recovery rating, indicating 50% to 70% expected recovery in a default.

The agency also said it affirmed the B+ corporate credit rating on the company.

The outlook is stable.

Although leverage increases to about 5x from the mid-3x level following the proposed $136 million dividend recap, pro forma leverage remains consistent with its rating, S&P said.

S&P said it did not view prior levels of leverage as likely to be sustained.

The ratings reflect the company's weak business risk profile, deriving from its niche position within a fragmented and highly competitive market, S&P said.

The ratings also consider its exposure to the cyclical retail industry, the agency said.

But, the company's revenues are expected to increase modestly given its leading position in the market for supply-chain management software and its diverse and entrenched customer base, S&P said.

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