S&P ups Regus recovery rating to 3

Standard & Poor's said it revised the recovery rating on Regus Group plc's $155 million secured debt to 3 from 4. This follows prepayments made by the group, which have improved the recovery prospects for the rated debt.

The outstanding $87 million senior secured credit facilities at Regus Corp. are rated B-, in line with the corporate credit rating on the guarantor, Regus Group plc (B-/positive).

The ratings on Regus reflect the group's high operating leverage, high cyclicality in demand for its services, its exposure to the fragmented and competitive serviced-office industry and weak credit measures, the agency said.

Positive rating factors include Regus' strong brand identity, good market position and low capital intensity and working capital needs.

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