S&P: Arrow Global notes BB-

Standard & Poor’s said it affirmed the B+ long-term counterparty credit rating on Arrow Global Group plc.

The agency also said it assigned a BB- rating and recovery rating of 2 to the proposed €225 million senior secured notes issued by Arrow Global Finance plc.

The outlook is stable.

Arrow Global recently announced that it intends to issue a €225 million senior secured bond with the proceeds intended to repay amounts drawn on the revolver, which was used to fund a corporate acquisition and portfolio purchases, S&P said.

The notes will continue to be secured by a first-ranking interest on all the shares of Arrow Global Group’s main subsidiaries and substantially all of its assets, the agency added.

This security package is similar to the package for Arrow Global Finance’s existing senior secured debt, S&P said.

The ratings reflect a view that the company’s leverage and debt-servicing metrics remain in line with existing expectations for its financial risk profile, despite an incremental weakening compared with previous expectations for year-end 2016, the agency said.

Despite Arrow Global’s concentrated business model, the company is taking steps toward reducing its sensitivities to particular end-markets within the wider industry, S&P said.

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