S&P downgrades LSF9 Balta

S&P said it lowered to B from B+ its long-term issuer credit rating on LSF9 Balta Issuer SA.

The outlook is stable.

At the same time, the agency lowered the issue rating on the existing €68 million super senior revolving credit facility maturing in 2021 to BB- from BB. The 1 recovery rating is unchanged.

S&P also lowered the issue rating on the €235 million outstanding senior secured notes to B from B+ and revised the recovery rating to 4 from 3, indicating an expectation of average recovery prospects (30%-50%; rounded estimate: 35%) in the event of payment default.

“The downgrade reflects our view that Balta will continue to face a number of operational challenges in the next 12 months, which will pressure its profitability and free operating cash flow generation,” the agency said in a news release.

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