Fitch assigns Boparan B-, notes B

Fitch Ratings said it assigned Boparan Holdings Ltd. an expected long-term foreign-currency issuer default rating of B- with a stable outlook. Fitch also assigned an expected B/RR3 rating to the planned £475 million of senior secured notes due in 2025 to be issued by Boparan Finance plc.

“The B-(EXP) rating reflects the group’s strong positions with a relatively large scale within the U.K. poultry market, with some diversification into growing and more profitable ready meals segment. We also factor the benefits from the planned reduction in Boparan’s total debt with proceeds from the recent Fox’s biscuits divestment and our expectations of stabilization of EBITDA margin at a higher than historical level of 4.8%-5% from FY22 (ending July 2022),” Fitch said in a press release.

The ratings consider the repayment of more than £200 million of debt out of Boparan’s current £330 million and €300 million of senior unsecured notes, £35 million super senior facility and £80 million revolving credit facility due in 2021 and refinancing of the rest with a new £80 million RCF and £475 million senior secured notes will proceed as planned, Fitch said.

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