S&P assigns B to BMC Acquisition loans

S&P said it assigned its B corporate credit rating to BMC Acquisition Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 3 recovery rating to the company's proposed $40 million revolving credit facility due in 2022 and $230 million first-lien term loan due in 2024. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of payment default.

S&P said the rating reflects BMC's small size, narrow geographic diversification and limited product breadth given a concentrated SMB end market. Partially offsetting these factors, S&P noted that the company's revenue growth is “very stable” despite limited investment from its previous financial sponsor.

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