S&P gives New Look notes B, CCC+ ratings

Standard & Poor’s said it affirmed its B long-term corporate credit rating on New Look Retail Group Ltd. The outlook is stable.

S&P also affirmed its B issue rating on the company’s existing senior secured notes. The 3 recovery rating on these notes remains unchanged (in the lower half of a 50%-70% recovery range).

S&P assigned a B issue and 3 recovery rating to New Look’s proposed senior secured notes (in the lower half of the 50%-70% recovery range) and a CCC+ issue and 6 recovery rating to its proposed senior unsecured notes.

After the closing of Brait SE’s acquisition of New Look, which S&P anticipates to occur at the end of June, S&P expects to withdraw its issue ratings on New Look’s to-be-redeemed £810 million senior secured fixed- and floating-rate notes.

The affirmation follows New Look’s announced aim to refinance its entire financial debt of about £1.2 billion with senior secured and senior unsecured notes issues. As a result of the generally lower interest rate environment, S&P said it anticipates the transaction will markedly reduce the group’s average cash interest margin from 8%-9%, excluding its payment-in-kind notes.

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