S&P trims Celeste Midco 1

S&P said it lowered its ratings for Celeste Midco 1 BV, its €750 million senior secured first-lien term loan B, due 2029 and its €150 million committed revolving credit facility due 2028 to B from B+. Celeste Midco is the parent of Affidea.

Celeste Midco plans to raise a €150 million add-on to its €600 million term loan B, to be used for bolt-on acquisitions.

“The downgrade reflects Affidea's slower than expected debt reduction prospects over the next 12-18 months–notably adjusted debt to EBITDA of above 5x and FFO to debt below 12%, driven by the company's latest debt-funded acquisitions,” the agency said in a statement.

S&P noted, “The latest debt-funded acquisitions will derail the company's deleveraging prospects in 2023, with credit metrics being weak for the B+ rating.”

The outlook is stable.

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