S&P gives RentPath loans B+, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on RentPath Inc.

The outlook remains stable.

At the same time, the agency assigned its B+ issue-level ratings to RentPath's proposed $50 million revolving credit facility and $475 million first-lien term loan. The recovery rating is 2, indicating an expectation for substantial (70%-90%) recovery for lenders in the event of a payment default.

S&P also assigned the company's proposed $200 million second-lien term loan a CCC+ issue-level rating with a recovery rating of 6, indicating an expectation for negligible (0%-10%) recovery for lenders in the event of a payment default.

Following the completion of the proposed transaction, on the current terms, S&P will withdraw all of its issue-level ratings on RentPath's existing credit facilities, which it expects to be repaid. Pro forma for the transaction, the agency estimates that RentPath will have about $710 million in adjusted debt outstanding.

"Our corporate credit rating on RentPath reflects the company's exposure to the volatile real estate market, its narrow business focus, competition from other online advertising firms, and its weak credit metrics," S&P credit analyst Christopher Thompson said in a news release.

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