S&P assigns BB to Cotiviti loan

S&P said it affirmed its BB- long-term corporate credit rating on Cotiviti Corp. The outlook is stable.

At the same time, S&P assigned a BB issue-level rating to the company's proposed first-lien credit facilities (which include a $100 million revolving facility expiring 2021, $250 million term loan A due 2021 and $575 million term loan B due 2023).

The recovery rating on the first-lien facilities is 2, indicating an expectation for lenders to receive substantial (70%-90%, in the lower half of the range) recovery in the event of a default.

“The rating affirmation follows Cotiviti's announcement that it intends to refinance its existing debt, which we believe is leverage neutral and does not affect our view of its credit profile,” said S&P credit analyst Peter Deluca in a news release.

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