S&P rates Cerberus notes B-

Standard & Poor’s said it affirmed the B+ long-term corporate credit rating on Cerba European Lab SAS.

The agency also said it affirmed the B+ rating on Cerba’s €530 million senior secured notes, including the proposed increase of €85 million, due 2020.

The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

S&P also said it assigned a preliminary B+ long-term corporate credit rating to Cerberus Nightingale 1 Sarl.

The agency also said it assigned a preliminary B- rating to the company’s proposed €145 million of subordinated notes. The recovery rating of 6 indicates 0% to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company’s announced acquisition of Novescia, which supports its fair business risk profile and highly leveraged financial risk profile, S&P said.

The ratings also consider the group’s track record of successfully integrating newly acquired companies while realizing planned synergies and gradually improving its EBITDA margin, the agency said.

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