S&P rates Grifols loan BB, notes B+

Standard & Poor's said it affirmed its BB long-term corporate credit rating on Grifols SA. The outlook is stable.

At the same time, S&P assigned a BB issue rating to Grifols' proposed senior secured bank debt. The recovery rating on this debt is 3, indicating an expectation of meaningful (50%-70%) recovery in the event of a payment default.

S&P also assigned a B+ issue rating to the company's proposed senior unsecured notes. The recovery rating on these notes is 6, indicating an expectation of negligible (0%-10%) recovery in the event of a payment default.

The BB+ issue rating and 2 recovery rating on Grifols' existing senior secured bank debt remain unchanged, as do the B+ issue rating and 6 recovery rating on the existing senior unsecured notes. S&P said it expects to withdraw these issue and recovery ratings on completion of the pending refinancing.

S&P said the affirmation reflects its view that Grifols' pending refinancing will only have a limited impact on S&P's assessment of its financial risk profile. In particular, S&P projects that Grifols' credit metrics will remain commensurate with the agency's current view of its financial risk profile as "significant."

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