Fitch assigns Loire loan BB-

Fitch Ratings said it assigned an expected BB-/RR3/52% to the senior secured debt to be issued by Loire Finco Sarl. Fitch also assigned a preliminary B+ rating to Loire UK MidCo 3 Ltd. Proceeds from the loan will be used to acquire LGC Group.

The expected B+ ratings reflects a defensive business risk profile balanced with high leverage and a modest scale. The rating is underpinned by structural organic growth prospects for the life-science and healthcare industries, high barriers-to-entry, as well as strong profitability and free cash flow generation. The issuer default rating, however, is constrained by the still modest size of LGC Group, its significant financial leverage as well as Fitch’s assumption LGC Group will continue to be an active consolidator in the fragmented global life sciences tools markets, which is likely to delay deleveraging.

The outlook is stable.

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