S&P affirms United Group after tap issue

S&P said it affirmed the B long-term corporate credit rating on United Group BV, along with the B rating on its senior secured notes.

The outlook is

The affirmation follows news that United Group plans to raise €125 million of senior secured notes through a tap issuance.

S&P said it understands that funds raised will primarily be used to repay outstanding borrowings under the revolving credit facility and small bolt-on acquisitions.

The tap issuance and somewhat weaker than previously anticipated free cash flows do not result in meaningful leverage reduction under the base-case scenario for 2016, which is contrary to previous expectations, the agency said.

The current rating, however, is supported by continued over-performance of the group's organic growth, relatively solid cash interest coverage of about 3x and strong leverage reduction capabilities, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.