S&P gives BB- to Iron Mountain notes

S&P said it assigned its BB- issue-level rating and 3 recovery rating to Iron Mountain (UK) plc’s proposed £400 million senior unsecured notes due 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default.

The issue-level rating is at the same level as the corporate credit rating on Iron Mountain Inc. (Iron Mountain), the parent company.

Iron Mountain will use the proceeds from the notes to repay Iron Mountain Europe plc’s 6 1/8% senior unsecured notes due 2022.

“Our corporate credit rating and stable rating outlook on Iron Mountain are unchanged. The rating reflects the company's position as the global market leader in the records management business, and its high leverage, acquisitive growth strategy, above-average capital intensity for a business services company, and shareholder-favoring dividend policies,” S&P said in a news release.

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