S&P rates IKKS loan BB-, notes B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to HoldIKKS SAS, the parent company of IKKS Group SAS.

The outlook is stable.

At the same time, the agency assigned its BB- long-term issue rating to IKKS' proposed €40 million revolving credit facility. The recovery rating is 2, indicating an expectation of "substantial" (70%-90%) recovery for creditors in the event of a default.

S&P also assigned its B+ long-term issue rating to IKKS' proposed €320 million senior secured notes. The recovery rating is 4, indicating an expectation of "average" (30%-50%) recovery for creditors in the event of a default.

S&P said the ratings reflect its view of IKKS' "highly leveraged" financial risk profile and "fair" business risk profile, as criteria define the terms.

The agency combines these factors to derive an anchor of b. The rating incorporates a one-notch positive adjustment to the anchor for the "comparable rating analysis," whereby the agency reviews IKKS' credit characteristics in aggregate. This primarily reflects S&P’s view that IKKS' financial risk profile is at the stronger end of its category, especially due to the forecast of comfortable coverage of cash interest by funds from operations.

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