Fitch assigns Castle UK B+, notes BB-

Fitch Ratings said it assigned Castle UK Finco plc (Miller Homes) a first-time long-term issuer default rating of B+ and its planned £815 million of senior secured notes an expected senior secured rating of BB- with an RR3 recovery rating. The planned issuance will be guaranteed by various group entities.

The agency also downgraded Miller Homes Group Holdings plc's long-term IDR to B+ from BB- to the level of new group parent Castle UK Finco plc, and removed it from RWN.

“The downgrade follows the acquisition of the Miller Homes group from Bridgepoint Group plc by funds managed by Apollo Global Management. The recapitalization to acquire the company will increase funds from operations (FFO) gross leverage to around 4.9x, beyond the current downgrade rating sensitivity of 3.5x. Fitch expects the company to steadily deleverage with cash flow generated from higher sale volumes,” the agency said in a press release.

Fitch said it withdrew Miller’s B+ rating owing to structural changes to the company. The rating on Miller’s £404 million of bonds was also withdrawn because they were repaid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.