S&P ups Formula One

S&P said it raised its corporate credit rating on Formula One (Alpha Topco ltd.) to B+ from B. The outlook is stable.

At the same time, S&P raised the issue rating on the $75 million revolving credit facility and first-lien term loan B, (including the existing $3.1 billion and the suggested upsize of $200 million, which will be used to repay the second-lien debt) to B+ from B. The recovery rating remains 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate 50%) in a default scenario.

S&P is also raising its issue rating on the company's second-lien debt to B- from CCC+. The recovery rating remains 6, indicating an expectation for negligible recovery (0%-10%; rounded estimate 0%) in a default scenario. S&P said it will withdraw the rating on the second-lien debt on the repayment of the debt.

“The upgrade reflects Formula One's improved credit ratios following the sizable reduction of its overall debt after its acquisition by Liberty Media, and its new financial policy,” S&P said in a news release.

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