Fitch rates Rexel loans BB, Ray Acquisition note B-

Fitch Ratings said it assigned a B+ issuer default rating to Rexel SA, a BB rating with a recovery rating of RR2 to the company's senior secured facilities and a B- rating with a recovery rating of RR6 to Ray Acquisition SCA's senior subordinated notes due 2015. Ray Acquisition is the 99.99% parent company owned by Rexel's financial investors.

The outlook is stable.

The agency said the ratings reflect Rexel's resilient business plan and global footprint, which confers a degree of portfolio protection and customer diversification spread between the residential, non-residential construction and industrial end markets.

The group acquired GE Supply in North America in August for $620 million. Fitch said this acquisition resulted in Rexel becoming the market leader in the largely fragmented U.S. marketplace, increasing its market share to 7% from 3.2%. Adjusted for the recently completed acquisitions, total leverage stands at 6.1x, which is significantly lower than the 7.4x total leverage at the leveraged buyout date.

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