S&P rates DLK loans B, CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to DLK Group.

The agency also assigned its B issue rating to the €310 million term loan B and €75 million revolving credit facility with a recovery rating of 3, indicating an expectation of meaningful (50%-70%) recovery prospects in the event of default.

At the same time, S&P assigned its CCC+ issue rating to the €100 million second-lien term loan with a recovery rating of 6, indicating an expectation of negligible (0%-10%) recovery prospects in the event of default.

The rating on DLK Group reflects its "weak" business risk profile combined with its "highly leveraged" financial profile.

TDR, a U.K.-based private equity firm, completed its acquisition of DLK Group from Delek Group in a leveraged buyout financed by a €310 million term loan, a €100 million second-lien loan, €70 million of new equity and €175 million of Delek Group notes (due in five and a half years), which S&P said it treats as debt.

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