S&P upgrades ALBA Group

S&P said it raised its long-term corporate credit rating on ALBA Group plc & Co. KG to B+ from B-. The outlook is positive.

S&P also raised its issue rating on the €203 million senior unsecured notes issued by ALBA Group to B- from CCC. The recovery rating is 6, indicating an expectation of negligible (0%) recovery in the event of a payment default.

At the same time, S&P removed all the ratings from CreditWatch with developing implications, where S&P placed them on Oct. 12, 2016.

“The upgrade reflects the successful closing of the sale of 60% stakes in ALBA Group's service business and high-growth business in China to the joint venture it set up with Techcent,” S&P said in a news release.

“We anticipate that the proceeds will be sufficient to repay the full amount outstanding under the senior secured facilities (€214 million as of Sept. 30, 2016). We also expect the group will redeem its €203 million senior unsecured notes due in May 2018 with the remaining proceeds and a new €80 million senior term loan.”

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