Fitch cuts, withdraws Labco; affirms Ephios

Fitch Ratings said it downgraded Labco SA's issuer default rating to B from B+ and removed it from Rating Watch Negative.

The outlook is stable.

The issuer default rating, together with the instrument ratings on Labco's existing super senior revolving credit facility (BB/RR2) and its €700 million senior secured notes due 2018 (BB-/RR3), has been withdrawn.

The action follows the completion of the acquisition of Labco by funds advised by Cinven via Ephios Bondco plc (B(EXP)/stable), and the repayment of Labco's legacy debt instruments. This has resulted in the removal of the Rating Watch Negative, on which the ratings were placed on June 11 on the agency's view that the acquisition would lead to a slightly more leveraged capital structure and hence no headroom at the previous rating level.

The expected ratings on Ephios and Ephios Holdco II plc assigned as part of the acquisitions of Labco and synlab Holding GmbH by funds advised by Cinven and their proposed merger have been affirmed at their existing levels.

Ephios' issuer default rating was affirmed at B(EXP) with a stable outlook and its €1.48 billion senior secured notes due 2022 were affirmed at B+(EXP)/RR3. The super senior revolving credit facility – rated BB-(EXP)/RR2 – remains on Rating Watch Positive.

Ephios Holdco's planned €375 million senior notes due 2023 were affirmed at CCC+(EXP)/RR6.

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