S&P upgrades Rexel

Standard & Poor's said it raised its long-term corporate credit rating on Rexel SA to BB from BB-. In addition, S&P said it affirmed its B short-term corporate credit rating on Rexel.

The outlook is stable.

At the same time, the agency said it raised to BB from BB- the issue ratings on Rexel's cumulative €1.5 billion revolving credit facilities and €650 million and €500 million senior unsecured notes. The recovery ratings on these instruments are unchanged at 4.

The upgrades reflect Rexel's strong operating performance so far in 2011, with organic sales growing by 6.6% and the EBITDA margin improving to 6.1% in the first nine months of 2011, the agency said.

Furthermore, S&P said the upgrades reflect its opinion that the group's credit metrics will remain commensurate with the higher rating, such as funds from operations to debt of about 20% over the next year.

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