S&P downgrades Truvo, loans

Standard & Poor's said it lowered its long-term corporate credit rating on Truvo NV to CCC+ from B-. The outlook remains negative.

At the same time, the agency said it lowered the issue rating on Truvo's €25 million super senior revolving credit facility due 2015 to B from B+. The recovery rating is unchanged at 1.

In addition, the agency said it lowered the issue rating on Truvo's €350 million senior secured term loan facility A due 2015 to CCC+ from B-. The recovery rating on this instrument was revised to 4 from 3, indicating an expectation of average recovery in the event of a payment default.

Furthermore, the issue rating on Truvo's €100 million second-lien term loan facility B due 2015 and Talon PIKco NV's €52.3 million payment-in-kind notes due 2019 was lowered to CCC- from CCC, the agency said. The recovery rating on these instruments is unchanged at 6.

S&P said the downgrade reflects its view that Truvo is likely to breach the covenant relating to its net leverage ratio within the next few quarters, absent any remedies.

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