S&P might up ATS Consolidated

S&P said it placed its B corporate credit rating on ATS Consolidated Inc. (Verra Mobility) on CreditWatch with positive implications.

At the same time, the agency placed the B issue-level rating on the company's senior secured debt and the CCC+ issue-level rating on its second-lien debt on CreditWatch with positive implications.

The recovery rating on the senior secured debt is 3, reflecting an expectation of meaningful recovery (50%-70%; rounded estimate: 55%) in the event of default, and the recovery rating on the second-lien debt is 6, reflecting an expectation of negligible recovery (0%-10%; rounded estimate: 0%) in the event of default.

S&P said the CreditWatch placement follows the company's announced merger with Gores Holdings II Inc. in a cash and equity transaction.

The agency said the CreditWatch placement reflects a view of the potential improvement to Verra's credit profile and ratings following the merger.

S&P also said that because the company is funding the transaction with cash and equity that will be used for debt repayment, it believes pro forma credit metrics are likely to strengthen.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.