S&P rates MHP eurobond B

S&P said it assigned a B rating to the senior unsecured eurobond to be issued by MHP Lux SA, a financing vehicle of MHP SE.

The proposed eurobond will be fully and unconditionally guaranteed by MHP, S&P said.

The proposed eurobond will amount to about $500 million, the agency said.

The group is expected to use the cash proceeds mainly for general purposes, including the refinancing of its eurobond due in 2020, S&P said.

The ratings reflect an assessment that the existing and proposed senior unsecured eurobond issued by MHP Lux has limited structural subordination within the group's capital structure, the agency said.

Despite the debt increase, S&P said it assumes that MHP's credit metrics should not materially deviate from the current base-case projections, given that a major part of the proceeds are earmarked for debt repayment.

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