OREANDA-NEWS. S&P Global Ratings today said it affirmed its 'B' corporate credit rating on New York City-based based Wall Street Systems Holdings Inc. The outlook is stable.

At the same time, we affirmed our 'B' issue-level rating on the company's amended senior secured credit facility, which consists of a $500 million first-lien term loan due 2023 and a $30 million revolver due 2021. The recovery rating remains '3', indicating our expectation for meaningful (50%-70%; lower half of the range) recovery in the event of a payment default.

"The rating on WSS reflects the company's niche market focus within the fragmented financial technology (fintech) industry, competition against larger players with significantly more financial resources, and the company's highly leveraged financial risk profile, with pro forma leverage in the mid-5x area post-transaction close, up from about 4x at March 31, 2016," said S&P Global Ratings credit analyst Andrew Yee.

The company's leading share within the treasury and foreign exchange software market, high recurring revenues and client retention rates, and stable free operating cash flow generation offset these factors.

The stable outlook on WSS reflects our view that the company's solid recurring revenue base and moderate free cash flow support stable operating trends.