S&P rates Ramundsen facilities B+, CCC+

S&P said it assigned its B corporate credit rating to Ramundsen Intermediate Holdings LLC.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating and 2 recovery rating to the company's $40 million senior secured revolving credit facility due in 2022 and $290 million senior secured term loan B due in 2024. The 2 recovery rating indicates an expectation of substantial (70%-90%; lower half of the range) recovery in the event of a payment default.

S&P also assigned its CCC+ issue-level rating and 6 recovery rating to the $120 million second-lien term loan due 2025. The 6 recovery rating indicates our expectation for negligible (0%-10%) recovery in the event of payment default.

The borrowers of the first-lien credit facilities and the second-lien term loan are Ramundsen Holdings LLC and Ramundsen Public Sector LLC.

S&P said the rating is based on Ramundsen's small scale, narrow market focus and slow-growing addressable market, which limit operating flexibility.

These factors are partly offset by its solid position in local government and municipal markets, stable operating track record and meaningful recurring revenue base.

S&P explained that the rating also reflects leverage pro forma for this transaction in the low-7 times area, although the agency expects the company will reduce leverage to below 7 times by the end of 2017 through organic EBITDA growth driven by cost reductions and increased operating efficiencies.

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