S&P lowers Network Solutions loan recovery to 3

Standard & Poor's said it revised its recovering rating on the first-lien credit facilities of Network Solutions LLC (B/stable).

The bank loan rating is still B, at the same level as the corporate credit rating on the company, but the recovery rating has been revised to 3 from 2, the agency said, noting that the 3 recovery rating indicates expectation of meaningful recovery of principal in the event of a payment default.

Network Solutions upsized its first-lien term loan, to $383 million from $340 million, reducing the recovery prospects for all first-lien debtholders, S&P said.

The first-lien credit facilities now consist of a $25 million revolving credit facility due 2013 and a $383 million term loan due 2014, the agency added.

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