S&P cuts Owl Finance, Yell

S&P said it cut the ratings on Owl Finance Ltd. and on the senior secured notes, issued by Yell Bondco plc, to CCC+ from B. S&P also cut the rating on Yell’s super senior revolver to B from BB-.

Owl Finance’s capital structure is unsustainable in the long term, with the agency’s forecasted S&P Global Ratings-adjusted debt to EBITDA exceeding 6x and a lack of meaningful positive free cash flow generation, S&P said.

“We no longer assume Owl Finance Ltd. and its subsidiaries will necessarily receive extraordinary financial support from the group’s ultimate parent company, Hibu Group Ltd. (Hibu), due to the continued operating challenges that Owl Finance is facing,” said S&P in a press release.

The outlook is stable.

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