S&P rates William Hill notes BB+

S&P said it affirmed its BB+ long-term corporate credit rating on William Hill plc.

The outlook is stable.

At the same time, the agency assigned its BB+ issue rating and recovery rating of 3 to William Hill's proposed £350 million senior unsecured notes maturing in 2023. The recovery rating implies meaningful recovery of 50%-70% in a default scenario.

S&P also affirmed the BB+ issue rating and 3 recovery rating on the £375 million unsecured notes due 2020.

The affirmation follows William Hill's announcement that it plans to issue £350 million senior unsecured notes maturing in 2023 and use the proceeds to refinance the existing £300 million senior unsecured notes due in 2016, the agency said.

The successful refinancing of William Hill's £300 million outstanding unsecured notes supports the company's liquidity by terming out near-term debt maturities. In addition, S&P said it anticipates that the transaction will lower interest costs and slightly improve adjusted metrics, positioning them at levels it considers commensurate with the existing ratings.

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