S&P rates Minerva Luxembourg notes BB-

S&P said it assigned its BB- issue-level rating to Minerva Luxembourg SA's proposed senior unsecured notes due 2026.

The agency also assigned the recovery rating of 3 to the debt, indicating a meaningful recovery expectation (50%-70%; in the lower band of the range) under a hypothetical default scenario.

The parent company, Minerva SA (BB-/positive/--), will fully guarantee the notes, and net leverage impact is expected to be neutral because the company intends to use the proceeds to cover a cash tender offer for any and all of the 2023 outstanding notes and other short-term debt pre-payments.

In this scenario, S&P said it continues to forecast the company's funds from operations to debt improving close to 20% and debt to EBITDA below 3 times over the next few years, while Minerva maintains its strong liquidity.

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