10:31 AM EDT, 03/22/2024 (MT Newswires) -- S&P Global Ratings said Thursday that it has assigned its B issuer credit rating to Dye & Durham Ltd. ( DYNDF ) .

This reflects its relatively small scale, operations in a niche segment of the legal industry, adjusted debt-to-EBITDA of about 6.3x, and concentrated ownership while acknowledging the company's diverse customer base and track record of high margins and steady free cash flow generation, the rating agency said.

At the same time, the agency assigned its B issue-level rating to the company's proposed $495 million of seven-year senior secured term loan B and $680 million of other secured debt.

"The stable outlook reflects our expectations that the company's revenues and EBITDA will benefit from increasing transaction volumes as well as growing annual recurring revenue (ARR). The rating also captures management's ambitious growth strategy," S&P said.

The company's stock slipped nearly 1% on last look on Friday.

Price: 15.43, Change: -0.19, Percent Change: -1.22