S&P lowers CCC Information credit to B

Standard & Poor's said it lowered its corporate credit rating on CCC Information Services Group Inc. to B from B+ and affirmed the B+ rating with a recovery rating of 4 on the group's $200 million senior secured bank facility, which includes a $30 million revolver due 2009 and a $170 million term loan due 2010.

The ratings were removed from CreditWatch, where they were placed on Sept. 22 with negative implications.

The downgrade of the corporate credit rating reflects S&P's expectation for a substantial increase in operating lease-adjusted total debt to EBITDA following the acquisition of CCC by Investcorp. The affirmation of the bank loan rating reflects the fact that CCC Information's existing creditors do not bear the additional risk inherent in the new capital structure, as existing debt will be refinanced as part of the transaction.

S&P said the ratings on CCC Information reflect a highly leveraged balance sheet and its narrow product focus within a mature niche marketplace: software and services designed to automate the automobile insurance claims process.

These are only partly offset by a largely recurring revenue base, supported by intermediate-term customer contracts, high barriers to entry, a leading market share and solid operating margins, the company said.

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