Fitch places ContourGlobal on watch

Fitch Ratings said it placed ContourGlobal plc's BB- long-term issuer default rating on rating watch negative. The agency also placed ContourGlobal Power Holdings SA's BB+/RR2 senior secured notes and super senior secured revolving credit facility ratings on RWN.

“The RWN reflects uncertainty over ContourGlobal's long-term capital structure and financial policy following the recently announced acquisition of the company by funds advised by global investment firm Kohlberg Kravis Roberts & Co. Inc. and its affiliates (collectively referred to as KKR; A/stable) and the incremental acquisition debt to be serviced by ContourGlobal. If ContourGlobal's leverage post-ownership change is above our rating sensitivity, it could lead to a downgrade. A capital structure in line with the current rating would lead to an affirmation,” Fitch said in a press release.

The agency said it aims to resolve the RWN once KKR provides clarity on the ultimate capital structure and financial policy, anticipated before Dec. 31; however, RWN resolution could take more than six months.

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