S&P rates Univeg notes CCC+

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

The outlook is stable.

The agency also assigned its CCC+ issue rating to the group's senior secured notes of €285 million issued by its key operating subsidiary Univeg Holding BV. The recovery rating on the senior secured notes is 5, indicating an expectation of modest (10%-30%) recovery in the event of a payment default.

S&P said the ratings reflect its assessment of the company's business risk profile as "weak" and its financial risk profile as "highly leveraged" as per the criteria.

The rating also reflects the agency's view that FieldLink will be able to maintain margins of more than 2% within the next several years, owing to improvements in company's operating efficiency and its focus on more-closely integrating with the supply chain of its customers, large food retailers in Europe. S&P also expects FieldLink's balance sheet will remain highly leveraged after taking into consideration an off-balance sheet factoring facility and operating leases.

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