S&P stabilizes B2Holding view

S&P said it changed its outlook for B2Holding ASA to stable from positive and affirmed its B+ ratings. The unchanged 4 recovery rating on the company’s bonds indicates an expectation of about 45% recovery in default.

“We believe B2Holding ASA's collection performance, like many others in the debt purchasing industry, could be challenged in the coming quarters amid a sharp economic slowdown in Europe, although government support programs to the weakest borrowers could limit the overall impact.

“Furthermore, we consider B2 still somewhat exposed to asset quality risk in its secured assets, despite the carve out into a nonrecourse special-purpose vehicle funded by Pimco, while newly established servicing entity Veraltis Asset Management still needs to prove its strategic benefits, in our view,” the agency said in a press release.

S&P said it forecasts cash revenue and cash EBITDA to exceed 2021 levels at about NOK 5.6 billion and NOK 4 billion respectively in 2022.

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