S&P rates BVI Medical loan B

S&P said it affirmed the B issuer credit rating on Beaver-Visitec International Holdings Inc. (BVI).

BVI entered into a definitive agreement to acquire PhysIOL Group SA.

The two will become subsidiaries of a newly formed holding company, BVI Holdings Mayfair Ltd., S&P said, and BVI will change its name to BVI Medical Inc.

The agency also said it assigned a B issuer credit rating to BVI Holdings Mayfair.

S&P also assigned a B rating with 3 recovery rating on the proposed first-lien credit facility issued by Beaver-Visitec International Holdings. The 3 recovery rating reflects a 55% expected default recovery.

The outlook is stable.

The ratings reflect the benefits from product portfolio expansion and the potential increase in absolute cash flow generation for the newly combined company, S&P said.

The ratings are tempered by its modest increase in leverage, the agency said.

The merger provides the combined company cross-selling opportunities, while PhysIOL's presence in Western Europe increases geographical footprint, S&P noted.

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