S&P: Ephios Bondco notes B+

Standard & Poor’s said it assigned a preliminary B+ long-term corporate credit rating to Ephios Bondco plc.

The agency also said it assigned a preliminary issue rating of B+ to the €800 million proposed senior secured notes to be issued by Ephios.

The recovery rating is 4, reflecting 30% to 50% expected default recovery.

The agency also said it affirmed the B+ long-term corporate credit rating on Labco SA and removed it from CreditWatch, where it was placed in May.

The outlook is stable.

S&P also affirmed the B+ rating on Labco’s existing €700 million senior secured notes due in 2018. The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

Ephios Bondco is the new holding company created by Cinven, the new owner of Labco, S&P said.

Ephios is expected to use the senior secured notes and the revolving credit facility to refinance all existing debt, the agency said.

The ratings reflect Ephios’ fair business risk profile and highly leveraged financial risk profile, S&P said.

The ratings also consider its relatively modest size in terms of revenues, concentration of revenues in Europe and continuous pricing pressure in Europe due to government budget constraints, the agency said.

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