S&P: Redtop on negative watch

S&P said it placed its B long-term corporate credit rating on Redtop Acquisitions Ltd. on CreditWatch with negative implications.

The agency said it also affirmed the existing issue and recovery ratings because it expects the existing debt to be repaid under the terms of the transaction.

The CreditWatch negative placement follows the announcement by Redtop Acquisitions (CPA Global's holding company) that it has signed a binding agreement to be acquired by funds advised by California-based Leonard Green Partners.

“The CreditWatch negative placement reflects our view that there is a one-in-two chance the acquisition financing package could see leverage not improve as much as we previously expected,” S&P said in a news release.

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