Fitch assigns Cerved B, notes B+

Fitch Ratings said it assigned Castor SpA a first-time long-term issuer default rating of B and its upcoming senior secured notes an expected instrument rating of B+ with an RR3 recovery rating.

Castor is an entity incorporated by ION Investment Group, for the public-to-private leveraged buyout of Cerved Group SpA.

“The ratings of Cerved reflect its high leverage, which is counterbalanced by its leading position in the Italian credit-information market and the strength of its servicing business. Its financial risk is also mitigated by its strong margins and cash conversion,” Fitch said in a press release.

The agency noted Cerved has an €80 million undrawn revolver and is expected to have €20 million of balance sheet cash from 2001 through 2004.

The outlook is stable.

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