S&P assigns negative view to Wall Street Systems

S&P said it removed the B issuer credit rating on Wall Street Systems Holdings Inc. from CreditWatch, where it was placed with negative implications May 2.

The B rating and 3 recovery rating on the first-lien debt is unchanged.

The negative outlook reflects a view that leverage will remain high over the course of 2019, incorporating the debt it raised to fund the acquisition of Allegro, S&P said.

The planned merger between Wall Street Systems, OpenLink International Holdings and Triple Point Holdings Inc. to form ION Corporate Solutions Finance Ltd. did not proceed, S&P noted.

The agency said it resolved the CreditWatch placement and the outlook is now negative as the consolidation of three ION portfolio companies did not proceed.

As a result, Wall Street Systems will raise an additional $450 million of first-lien debt to fund its acquisition of Allegro, S&P explained.

The agency said it expects initial leverage to increase to the mid-8x range and remain high over the next 12 months.

The Allegro acquisition should provide some diversity to Wall Street Systems’ software suite and unlocks some cross-selling opportunities longer term, S&P said.

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