Fitch rates Iceland Bondco notes B+

Fitch Ratings said it assigned Iceland Topco Ltd. an issuer default rating of B with stable outlook.

Fitch also assigned a senior secured debt rating of B+/RR3 to the senior bond issued by Iceland Bondco plc.

“The B rating reflects Iceland's stable and profitable specialist food operations, with a strong focus on its target customer base and leading market position in the U.K. frozen food segment, counterbalancing its small size and limited diversification,” the agency said in a news release.

“Currently the rating is constrained by the high financial leverage and moderate free cash flow (FCF) generation as the group continues to develop its presence in the growing U.K. discount food retail segment.”

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