Fitch rates Towergate notes BB-, B

Fitch Ratings said it assigned a B- long-term issuer default rating with a stable outlook to TIG Finco plc (Towergate), the new holding company for the Towergate Group.

The agency also assigned BB-/RR1 rating to the £75 million super senior secured notes due 2020 and a B/RR3 rating to £425 million senior secured notes due 2020.

In addition, Fitch downgraded Towergate Finance plc's long-term issuer default rating to RD (restricted default) from C, before withdrawing the rating. It also downgraded the senior secured and senior unsecured notes to RD and withdrew the ratings.

Fitch said the B- issuer default rating assigned to Towergate reflects the continued pressure on free cash flow generation and Fitch's expectation of limited organic growth given the challenging market environment.

The rating further reflects the meaningful execution risk that still remains in completing the transformation plan as the company looks to integrate its new corporate structure. Towergate is a new company, which, under the Scheme of Arrangement, continues the business activities previously undertaken by Towergate Finance plc, the agency said.

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