S&P gives Peermont, bond B

Standard & Poor's said it assigned its B long-term corporate credit rating to Peermont Global (Proprietary) Ltd.

The outlook is stable.

At the same time, S&P said it assigned a recovery rating of 3 to Peermont's proposed €517 million equivalent senior secured bond, indicating meaningful recovery of principal in the event of a payment default and an issue rating of B, the same level as the corporate credit rating.

According to the agency, the ratings on Peermont reflect its highly-leveraged financial profile, after refinancing is completed, heavy dependence on a single flagship site and high-exchange rate risks while these concerns are partly mitigated by the company's cash-generative businesses, record of revenue growth and high EBITDA margins and position as the second-largest casino operator in Gauteng, South Africa's richest and most populous province.

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