Fitch rates Ashtead notes BBB-

Fitch Ratings said it assigned Ashtead Capital, Inc.'s planned dollar-denominated eight-year fixed-rate second-priority senior secured notes issue an expected rating of BBB-.

The notes are fully and unconditionally guaranteed by Ashtead Group plc (BBB-/stable) and hold a junior charge over substantially the same assets as a higher-ranking asset-based senior secured revolving credit facility.

The second-priority senior secured notes are rated in line with Ashtead Group's long-term issuer default rating.

The agency said the size of the ABL facility and the notes' structural subordination to it means Fitch assesses their recovery prospects as average rather than above average, which could lead to notching up from the issuer default rating.

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