S&P puts FTE Verwaltungs on positive watch

S&P said it placed the B long-term corporate credit rating on FTE Verwaltungs GmbH on CreditWatch with positive implications.

The agency also said it placed the BB rating on the €42.5 million super senior revolving credit facility and B rating on the €263.3 million senior secured notes on CreditWatch positive.

The recovery ratings remain at 1+ for the revolver and 3 for the senior secured notes, the latter rating indicating 50% to 70% expected default recovery.

The CreditWatch placement follows news that Valeo intends to acquire FTE from its private-equity owner, Bain Capital Private Equity, S&P said.

The transaction values FTE at €819 million and is subject to regulatory approvals, which are expected to be completed in the fourth quarter of 2016 or the first quarter of 2017, the agency said.

S&P said it believes FTE's credit profile will benefit from the acquisition by the financially stronger Valeo.

The agency said it will assess FTE's strategic importance to the company after the deal closes.

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