S&P rates Holdelis B+, Novalis notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Holdelis SAS.

The outlook is stable.

The agency also said it assigned a B+ rating to Novalis SAS's €450 million senior secured notes maturing in 2018. The recovery rating on the proposed notes is 3 indicating 50% to 70% expected default recovery.

The ratings primarily reflect Holdelis's financial risk profile as highly leveraged due to the amount of company debt and its aggressive financial policy, S&P said.

The company's business risk profile is considered fair given its concentration in the French market from which it derives the bulk of its revenues, roughly 80% at year-end 2012, the agency said.

The company's presence in a fragmented and competitive industry and its focus on Western European markets weigh on the ratings, S&P added.

These weaknesses are partly mitigated by the group's resilient and healthy EBITDA margins, as well as its leading positions in its key operating segments, the agency said.

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