S&P rates TransUnion notes B-, view to negative

Standard & Poor's said it revised the outlook on TransUnion Corp. to negative from stable.

The B+ corporate credit rating and all issue-level and recovery ratings on the company's existing debt remain unchanged.

S&P also assigned a B- rating to the proposed $400 million new senior unsecured payment-in-kind toggle notes to be issued by TransUnion Holding Co., the parent company of TransUnion.

The agency also assigned a 6 recovery rating to the new notes, indicating 0% to 10% expected recovery in a default.

The outlook revision reflects an expectation that pro forma leverage will remain above 6.5x for an extended period of time, S&P said, and pro forma free operating cash flow-to-total debt will decline to about 3% from more than 8%.

The company's good market position and high barriers to entry in the global credit information sector, along with consistent strong profitability and positive free operating cash flow help offset the company's high leverage and very aggressive financial policies, the agency said.

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