S&P ups VAC

Standard & Poor's said it raised its long-term corporate credit rating on VAC Holding GmbH to B- from CC, along with its short-term rating was raised to B from C. The agency also said it raised the rating to B+ from CCC on the €173 million senior bank facilities issued by VAC KG and guaranteed by VAC. S&P also raised the ratings to B- from CC on the €55 million subordinated notes issued by VAC Finanzierung GmbH and guaranteed by VAC.

The outlook is stable.

The upgrade reflects a view of VAC's significantly improved liquidity profile following the exchange of about €80 million of its notes into hybrid capital by its shareholder, S&P said.

The upgrade also reflects amendments to the company's senior credit facilities, including the introduction of new financial covenants and a waiver of a covenant breach in 2009, the agency said.

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