S&P revises Black Knight to positive

S&P said it affirmed its BB- corporate credit rating on Black Knight Financial Services, Inc. and revised the outlook to positive from stable.

The agency also affirmed its BB issue-level rating, with a recovery rating of 2, on Black Knight Infoserv, LLC's senior secured credit facility, which consists of a $400 million revolving credit facility due 2020 and $1.2 billion first-lien term loan ($800 million of which is due in 2020 and $400 million of which is due in 2022). The 2 rating indicates an expectation for substantial recovery (70%-90%; at the higher end of the range) in the event of payment default.

In addition, S&P affirmed its BBB issue-level rating on Black Knight InfoServ’s $600 million senior unsecured notes due 2023 based on the unconditional guarantee by the parent company Fidelity National Financial.

"Our outlook revision to positive from stable is based on our forecast that leverage will decline to 3.8x by the end of 2016, and 3.3x for 2017, down from about 4.0x as of Sept. 30, 2016, on EBITDA growth and required amortization payments," S&P credit analyst Adam Lynn said in a news release.

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