S&P upgrades Web.com, loan

Standard & Poor's said it raised its long-term corporate credit rating on Web.com Group Inc. to B+ from B.

The outlook is stable.

In addition, the agency revised its recovery rating on the company's senior secured $355.1 million first-lien term loan and $70 million revolving credit facility to 1, indicating an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default, from 2 (70% to 90% recovery expectation).

S&P subsequently raised the issue-level rating on this debt to BB (two notches above the B+ corporate credit rating) from B+, in conjunction with its notching criteria.

S&P said the upgrade reflects an improvement in the company's credit metrics as a result of subscriber and organic revenue growth, especially in its higher-margin "do it for me" services (for which Web.com builds, maintains, and promotes the customer's website), debt repayment, and its expectation that these trends will continue in 2014.

The agency believes the subscriber growth is a result of marketing investments and easy solutions designed to manage customer's online presence.

© 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.