S&P upgrades Reliance to BBB-

S&P said it raised the long-term corporate credit rating on Reliance Intermediate Holdings LP (RIHLP) to BBB- from BB+.

This action follows the completion of Cheung Kong Property Holdings Ltd.'s (CKP; A/stable/--) acquisition of Reliance Intermediate.

At the same time, the agency removed Reliance Intermediate and subsidiary Reliance LP from CreditWatch, where they were placed with positive implications April 21.

In addition, S&P raised the issue-level rating on Reliance Intermediate $375 million senior secured notes to BB+ from BB- and affirmed the BBB- issue-level rating on Reliance's senior secured notes.

“The upgrade follows completion of the previously announced plan for CKP, via its subsidiary CKP (Canada) Holdings Ltd., to acquire Reliance from investment funds managed by Alinda Capital Partners Ltd.,” S&P said in a news release.

“Reliance is now part of an ownership group that we consider to have a stronger credit profile and track record of investments that are managed with a comparatively conservative view of leverage.

“In our view, there is lower risk that adjusted debt-to-EBITDA will exceed 5x in the future, and that Reliance will remain a long-term holding within CKP's asset portfolio. We now consider Reliance a moderately strategic entity of CKP, leading to the one-notch upgrade on the company,” the agency added in the release.

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