S&P rates eResearch loans B+

Standard & Poor's said it assigned a B corporate credit rating to eResearch Technology Inc., along with a B+ rating to the company's $270 million senior secured credit facilities.

The senior secured credit facility is composed of a $50 million revolving credit facility due in 2017 and a $220 million term loan B due in 2018.

The outlook is positive.

The senior credit facility also permits $75 million of incremental term loan capacity. The senior secured recovery rating is 2, reflecting 70% to 90% expected recovery in a default.

The ratings reflect the company's weak business risk profile, which reflects its small scale, despite its broad customer base and leading market share as a niche provider of cardiac safety and respiratory central laboratory services, S&P said.

While the company is the market leader in its two largest business segments, the company is a very small player in the much larger health care services industry, the agency said.

© 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.