S&P: TriZetto loan B

Standard & Poor's said that it affirmed the B corporate credit rating on TriZetto Group Inc. and removed all ratings from CreditWatch, where they were placed with positive implications on Sept. 20.

S&P also revised the outlook on the company to stable from positive and assigned a B issue-level rating and 3 recovery rating to TriZetto's proposed $750 million first-lien senior secured credit facility, consisting of a $100 million revolving credit facility due 2016 and a $650 million term loan B due 2018.

The 3 recovery rating indicates the expectations for meaningful (50%-70%) recovery for lenders in the event of a payment default.

The company will use the proceeds from the new senior secured facilities to refinance its existing debt and to complete an acquisition.

The rating on TriZetto reflects the company's narrow business profile, tepid organic growth, highly leveraged financial profile and an acquisitive growth strategy, the agency said.

TriZetto's solid customer base, revenue visibility and positive industry trends, reflecting increasing adoption of electronic health records, partially offset those factors, the agency added.

The outlook revision to stable reflects increased leverage pro forma for the Gateway acquisition, S&P said.

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