S&P rates Rexel notes BB-

S&P said it assigned a BB- rating to the €500 million unsecured notes due in 2023 to be issued by Rexel SA.

The rating is one notch below the long-term corporate credit rating on Rexel, S&P said.

The recovery rating of 5 indicates 10% to 30% expected default recovery.

This reflects the debt's structural subordination to sizable prior-ranking liabilities combined with the significant amount of unsecured and unguaranteed debt, limited protection offered to noteholders, weak documentation and reliance on payments from subsidiaries to pay obligations under the notes, S&P said.

The proceeds from the proposed notes will be used to refinance Rexel's existing €650 million notes, the agency said.

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