S&P upgrades Elior

Standard & Poor’s said it raised the long-term corporate credit rating on Elior SCA to BB.

The agency also said it raised the rating on the €228 million senior secured notes due 2020 issued by special purpose vehicle Elior Finance & Co. SCA (Elior Finance) to BB.

The agency also said it raised to BB the ratings on the facility H1 loan that Elior Finance extended to Elior and the group’s other senior secured facilities.

S&P said it removed all of these ratings from CreditWatch with developing implications, where they were placed in May.

The outlook is stable.

The upgrades follow the successful completion of Elior’s initial public offering June 11, which raised €745 million in net proceeds.

Of the proceeds, Elior used €615 million to pay down part of its senior secured loans due 2019 and €123 million to partially redeem its senior secured notes due 2020.

The forecast credit metrics therefore improved as a result of this transaction, S&P said.

Elior’s business risk profile is considered satisfactory, which reflects the company’s leading positions in the markets that it operates, the agency said.

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