S&P assigns Schieder Möbel bond B-

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Schieder Möbel Holding GmbH.

The outlook is negative.

At the same time, the agency said it assigned a B- senior subordinated debt rating to Schieder's proposed €145 million bond.

The two-notch differential reflects the contractual subordination of the notes to higher priority debt, primarily the senior syndicated loan, despite benefiting from senior subordinated guarantees from Schieder's material subsidiaries, the agency said.

The ratings on Schieder reflect its exposure to its shrinking home market, its low margins in an international context and the company's aggressive financial risk profile, S&P said.

The ratings are supported by Schieder's broad product diversification and increasing internationalization, S&P noted.

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