S&P puts Delachaux on positive watch

S&P said it placed the B+ long-term issuer credit rating on Delachaux SA on CreditWatch with positive implications.

The agency also said it put the B+ rating on the company's senior secured term loan and revolving credit facility on CreditWatch positive.

The recovery rating is 4, indicating 40% expected default recovery.

The agency said it expects to withdraw the issue and recovery ratings once the new capital structure is in place.

The CreditWatch placement follows news that Delachaux intends to be listed on the Paris stock exchange, which could happen before the end of June, S&P said.

If the initial public offering is finalized as proposed, the agency said it believes it would enhance the company's credit profile.

After the proposed IPO, debt repayment and refinancing, Delachaux's gross debt is expected to consist of about €450 million of new senior unsecured term loans due 2023, S&P said.

The agency said it continues to think that Delachaux's business risk profile is supported by the group's global positions in niche markets, which feature high barriers to entry and an inherently stable revenue base.

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