S&P rates VTG BBB

S&P said it assigned a BBB rating to VTG AG and its financing unit VTG Finance SA. The agency also assigned a BBB rating to the secured $342 million U.S. private placement.

The company completed a recapitalization Wednesday.

The new financing package comprises of a €550 million two-year backstop facility, a €530 million five-year term loan, a €400 million seven-year term loan and €665 million term loan facilities.

The new structure also includes a €150 million revolver and €150 million capital expenditures facility, which are undrawn on transaction close, S&P said.

“The ratings are supported by VTG’s strong fleet utilization rates and leading market positions within the European freight railcar leasing segment, which is generally less prone to lease-rate volatility. We believe that VTG’s stable earnings and profitability levels will continue to be supported by the long-term nature of most of its contracts, stable lease rates and high renewal rates over the next 12 to 24 months,” S&P said in a press release.

The outlook is stable.

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