Fitch rates Rexel notes BB

Fitch Ratings said it assigned an expected senior unsecured rating of BB to Rexel, SA’s planned €500 million senior notes issue due in 2022.

The proceeds will be used toward the early redemption of the 6 1/8% notes due in 2019, Fitch said.

The planned bond will be unguaranteed, ranking pari passu to all existing and future unsecured indebtedness of the issuer that is not subordinated to the notes, including that under the senior credit facilities, the agency said.

The ratings reflect the company’s weak sales recovery with organic sales rebounding 1.1% in 2014, following two years of decline, Fitch said.

The agency said it conservatively forecasts organic sales growth in the low single digits over the next three years. This is mainly due to likely persistent weaknesses in several core European markets and the negative impact of low oil and copper cable prices, Fitch said.

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