S&P cuts Xefin notes, rates Xella loans B+

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Xella International SA.

The outlook is stable.

The agency also assigned its B+ issue rating to the proposed €215 million senior secured term loan G to be issued under the existing senior facilities agreement. The recovery rating is 3, indicating an expectation of meaningful (50%-70%) recovery in the event of a payment default. S&P expects recovery prospects to be in the higher half of the range.

At the same time, S&P lowered its issue rating on the existing €325 million senior secured notes issued by special-purpose vehicle Xefin Lux SCA to B+ from BB-, as it revised the recovery rating on facility D2, whose terms are back-to-back with the notes, downward to 3 from 2.

The agency said it believes the proposed transaction will provide the group with additional flexibility in its liquidity, as it forecasts that headroom under the current covenant is likely to reduce to below 15% over the course of this year.

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