S&P rates Black Knight loan BB

Standard & Poor’s said it assigned a BB-corporate credit rating to Black Knight Financial Services Inc.

The agency also said it assigned a BB rating and 2 recovery rating to Black Knight Infoserv LLC’s proposed $1.2 billion senior secured first-lien term loan and $400 million revolving credit facility.

The 2 rating indicates 70% to 90% expected default recovery.

The rating on Black Knight InfoServ’s $600 million senior unsecured notes due 2023 is BBB based on the unconditional guarantee by the parent company, Fidelity National Financial, which will continue to be a majority owner following the company’s initial public offering, S&P said.

The outlook is stable.

The ratings reflect a view of Black Knight’s narrowly focused business risk profile within the mortgage-processing solutions market, limited scale and pro forma leverage in the 5x range, the agency said.

The stable outlook reflects the company’s leading and defensible market position and an expectation for modest revenue growth and leverage reduction over the next year, S&P said.

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