S&P: Highland view to stable

Standard & Poor's said it revised the outlook on Highland Group Holdings Ltd. (House of Fraser) to stable from negative.

S&P also said it affirmed its B long-term corporate credit rating.

The agency also said it affirmed the B ratings on the senior secured bonds issued by House of Fraser (Funding) plc. The recovery rating on these bonds is unchanged at 4, indicating 30% to 50% expected default recovery.

The outlook revision reflects a view that House of Fraser will likely sustain trends of low single-digit EBITDA growth and improving operating performance in the year ahead, S&P said.

These trends are evident in stabilizing trading figures in the financial year that ended Jan. 26, the agency said.

The improvement in trading performance has increased headroom under House of Fraser's financial covenants, thereby improving the company's overall liquidity position, S&P added.

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