S&P: Elior notes, loan BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Holding Bercy Investissement SCA.

The outlook is stable.

The agency also said it assigned a BB- rating to the proposed €300 million senior secured notes due in 2020 to be issued by special-purpose vehicle Elior Finance & Co. SCA.

S&P also said it assigned BB- ratings to the facility H1 loan that Elior Finance will extend to Holding Bercy, along with the group's other senior secured facilities.

The recovery rating on the loan and senior secured facilities is 3, indicating 50% to 70% expected default recovery.

The ratings reflect the group's highly leveraged financial risk profile and satisfactory business risk profile, S&P said.

The ratings are supported by its significant free operating cash flow generation, which is forecasted to be nearly €75 million in 2013 and more than €110 million in 2014, the agency said, adding that it believes the company can use this for deleveraging.

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