S&P upgrades Matalan

S&P said it raised its long-term corporate credit rating on Missouri Topco Ltd. to B- from CCC+.

The outlook is stable.

At the same time, the agency affirmed the B- issue rating on the £350 million first-lien senior secured notes issued by Matalan Finance plc. The recovery rating is 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 60%) of principal in the event of a payment default.

S&P also affirmed the CCC issue rating on the £130 million second-lien senior secured notes issued by Matalan Finance. The recovery rating is 6, indicating an expectation of negligible (0%-10%; rounded estimate: 0%) recovery prospects in the event of a default.

The agency withdrew the issue ratings on the £330 million first-lien senior secured instruments and £150 million second-lien senior secured notes issued by Matalan Finance, following repayment.

S&P removed the corporate credit rating on Missouri Topco from CreditWatch, where it was placed with positive implications on Jan. 15.

“The upgrade follows Matalan's successful refinancing of its senior secured debt. We consider that this refinancing has stabilized the group's capital structure and liquidity position, and comfortably extended its debt maturities,” the agency said in a news release.

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