S&P assigns Elli loan BB-, notes B+ and B-

Standard & Poor's said it assigned its B- preliminary long-term corporate credit rating to Elli Investments Ltd., the parent company of Four Seasons Healthcare (Jersey) Holdings Ltd. The outlook is stable.

At the same time, the agency said it assigned its BB- preliminary issue rating to the £40 million super senior revolving credit facility issued by Elli Finance (UK) plc. The preliminary recovery rating on the facility is 1+, indicating an expectation of full recovery in the event of a payment default.

In addition, S&P said it assigned its B+ preliminary issue rating to the proposed £350 million senior secured notes to be issued by Elli Finance (UK). The preliminary recovery rating on the senior secured notes is 1, indicating an expectation of very high recovery in the event of a payment default.

Finally, the agency said it assigned its B- preliminary issue rating to the proposed £175 million senior unsecured notes to be issued by Elli Investments. The preliminary recovery rating on the senior unsecured notes is 4, indicating an expectation of average recovery in the event of a payment default.

S&P said the rating reflects its view of the company's relatively aggressive capital structure following the proposed leveraged buyout by private equity group Terra Firma. The buyout was announced in April and is due to be completed no later than September.

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