S&P upgrades Falcon, rates loan BB+

Standard & Poor’s said it upgraded the long-term issuer credit rating on Falcon Group Holdings (Cayman) Ltd. to BB- from B+ and affirmed its B short-term rating.

The outlook is stable.

The agency also said it assigned a BB+ rating and 1 recovery rating to Falcon’s proposed $250 million senior secured five-year term loan B.

The ratings reflect the company’s niche position in the global trade-finance market and the leverage and debt-servicing profiles resulting from its funding strategy, S&P said.

The company is expected to generate relatively predictable, recurring cash flows from its asset-light, low-cost business model, which lead to the upgrade, the agency said.

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