S&P lifts Minimax, debt to BB-

Standard & Poor's said it raised its long-term corporate credit rating on Minimax Viking GmbH to BB- from B+.

The outlook is stable.

At the same time, the agency raised its issue rating on the group's senior secured debt to BB- from B+. The recovery rating on this debt remains at 3, indicating an expectation of meaningful recovery prospects for lenders in the event of a payment default, in the lower half of the 50%-70% range.

S&P said the upgrade reflects its expectation that Minimax's credit metrics will likely strengthen further in 2015-2016 as a result of continued solid revenue growth, improving operating margins, and significant free cash flow generation.

The agency now sees S&P-adjusted debt to EBITDA staying sustainably and significantly below 4.5 times and funds from operations to debt of 14%-16%, metrics that we see comfortably in line with the "aggressive" financial risk profile category.

S&P therefore changed its comparable rating analysis to "neutral" from "negative." It applied the negative assessment previously to reflect the view of Minimax's weak positioning within the "aggressive" financial risk profile category.

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