Fitch to affirm Dignity Finance

Fitch Ratings said that it expects to affirm Dignity Finance plc's notes, if the class A bondholders approve the consent solicitation for amendments of the securitization's legal documentation.

The agency said it believes that the proposed amendments would not materially impact the existing notes' ratings, and, therefore, it will likely affirm the £124.4 million class A notes at A and the £132.5 million class B notes at BBB, if the amendments are approved.

The outlook is stable.

Fitch said the key aims of the amendments are to allow Dignity to operate a ring-fenced development group alongside the securitization group, and to broaden the range of business opportunities available to Dignity, such as allowing the acquisition of short leasehold crematoriums or the acquisition of shares/assets of non-obligors.

The amendments would also explicitly permit Dignity to use the cash in the event the restricted payment conditions are breached, but only for the sole benefit of the securitization group, such as the acquisition of permitted businesses or notes, the agency said.

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