S&P upgrades Evertec, loans

Standard & Poor's said it raised its corporate credit rating on Evertec Group LLC to BB- from B+ and removed it from CreditWatch with positive implications, where it had been since March 21.

The outlook is stable.

At the same time, S&P raised the issue-level ratings on the company's new first-lien senior secured credit facilities (consisting of a $100 million revolver, $300 million term loan A and $400 million term loan B) to BB- from B+ and removed them from CreditWatch positive. The recovery rating on this debt is unchanged at 3.

The agency also withdrew all the issue-level and recovery ratings on the company's former first-lien senior secured credit facilities and senior unsecured notes, as the company will repay this debt with proceeds from the IPO and new debt.

"The upgrade follows Evertec's successful execution of an IPO and concurrent refinancing. The IPO alters our view that sustained deleveraging is unlikely, given the reduced private equity ownership and broader oversight and fiduciary responsibility as a public firm," S&P credit analyst Alfred Bonfantini said in a news release.

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