Fitch rates Techem debt B+, CCC+

Fitch Ratings said it assigned Blitz F18-674 (Techem GmbH) an expected long-term issuer default rating of B(EXP) with a stable outlook.

In addition, the agency assigned an expected B+(EXP) rating with a recovery rating RR3 (56%) to the senior secured debt to be issued by Blitz F18-675 and CCC+(EXP) with a recovery rating of RR6 (0%) to the senior instruments to be issued by Blitz F18-674.

Blitz's expected ratings reflect a utility-like business profile that is positioned between high non-investment and low investment grade categories and the constraint of high total gross leverage, Fitch said.

Proximity to utility peers such as Viridian Group Investments Ltd. (B+/stable) and Melton Renewable Energy UK plc (BB/stable) is underpinned by a benign regulatory environment and a high share of contracted revenue, while comparison with sub-metering peers highlights Techem's stronger business profile and cash flow conversion but also the company's higher gross total debt, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.