Fitch rates Ideal Standard notes CCC

Fitch Ratings said it affirmed Ideal Standard International SA's long-term issuer default rating at CC and short-term issuer default rating at C.

The agency also said it assigned an expected CCC rating and recovery rating of RR2 to the new AAA series notes.

Fitch also downgraded the AA series notes to C with recovery rating of RR5.

The rating actions follow the company’s issuance of new €75 million series AAA notes and the refinancing of the existing €25 million revolving credit facility.

The downgrade of the AA notes reflects their subordinated status in relation to the new series AAA notes, Fitch explained.

The series AAA notes rank senior to all existing notes and junior only to the super senior revolver, the agency said.

The ratings reflect the group's improved liquidity in 2017, although leverage and refinancing risks remain high because the group's debt matures in 2018, Fitch noted.

The issuance has, however, relieved immediate liquidity pressures, the agency said.

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