S&P lifts Iglo Foods view to positive

Standard & Poor’s said it revised the outlook on Iglo Foods Holdings Ltd. to positive from stable.

The agency also said it affirmed the company’s B+ long-term corporate credit rating on Iglo and the B+ ratings on Iglo’s senior secured facilities.

The recovery rating is unchanged at 3.

The outlook revision reflects the intended sale by private equity firm Permira of its stake in Iglo to Nomad Holdings – a publicly listed company viewed as a strategic owner, S&P said.

The agency said it now treats Iglo’s existing €1.125 billion shareholder loan as equity.

Iglo’s financial risk profile is on the borderline between highly leveraged and aggressive, with leverage ratios expected in the 4.5x to 5x range in 2015, the agency said.

This transaction could potentially enhance the group’s financial risk profile, S&P said.

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