S&P gives Hurtigruten loan BB-, notes B

Standard & Poor's said it assigned its B long-term corporate credit rating to Silk Bidco AS, the immediate parent company of Hurtigruten ASA.

The outlook is stable.

At the same time, the agency assigned its BB- issue rating and 1 recovery rating to the group's €65 million super senior revolving credit facility due 2020 and its B issue rating to the group's €455 million senior secured notes due 2022. The recovery rating on the notes is 4, indicating an expectation of average (30%-50%) recovery prospects in the event of a payment default. The recovery expectations on the notes are at the higher half of the 30%-50% range.

S&P said the ratings reflect its view of Hurtigruten's business risk profile as "weak" and financial risk profile as "highly leveraged," as criteria define the terms. The agency combines these factors to derive an anchor of b. Other credit considerations have no impact on the rating outcome.

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