S&P: Cegedim recovery to 3

Standard & Poor's said it revised the recovery rating to 3 from 4 on the €300 million unsecured notes maturing in 2015 issued by Cegedim SA.

The recovery rating of 3 indicates a 50% to 70% expected recovery for creditors in a default.

The agency also said it affirmed the BB long-term issue rating on the unsecured notes. The issue rating is in line with the corporate credit rating on Cegedim, S&P said.

The rating revision reflects Cegedim's refinancing of its bank facilities in June 2011, S&P said.

Cegedim used the proceeds of a new €200 million amortizing term loan A and €80 million revolving credit facility due 2016 to refinance the previous bank facilities, the agency said.

The issue and recovery ratings on the unsecured notes due 2015 reflect the unsecured nature of the notes and Cegedim's post-default exposure to the French insolvency regime, which is viewed as relatively unfavorable for creditors, S&P said.

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