S&P rates Findus notes B-

Standard & Poor's said it assigned its B- long-term corporate credit rating to Lion/Gem Luxembourg 3 Sarl. The agency refers to Lion/Gem Luxembourg as Findus or the group.

At the same time, S&P assigned its B- issue rating to the £410 million-equivalent senior secured notes issued by Lion/Gem Luxembourg's subsidiary Findus Bondco SA. The recovery rating on these notes is 4, indicating the expectation of average (30%-50%) recovery in the event of a payment default.

The assignment follows Findus' announcement that it successfully issued its £410 million-equivalent senior secured notes and repaid its existing term loan.

Aside from the new senior secured notes, the group's capital structure also includes a £60 million super senior revolving credit facility and about £457.4 million of existing preferred equity certificates. These preferred equity certificates remain subordinated within the structure.

S&P said the ratings on Findus are constrained by its assessment of the group's financial risk profile as "highly leveraged" and its business risk profile as "weak."

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