S&P: Dometic on positive watch

Standard & Poor’s said it placed the B long-term corporate credit rating on Dometic Group AB on CreditWatch with positive implications.

The agency also said it affirmed the CCC+ rating on Dometic’s €314 million payment-in-kind toggle notes due 2019. The recovery rating on these notes remains at 6, indicating 0 to 10% expected default recovery.

The issue rating also was placed on CreditWatch positive because the notes will be redeemed upon completion of an initial public offering.

The positive watch placement follows news that Dometic is seeking to raise new equity and that the current owner EQT is to sell shares through an IPO on the Nasdaq Stockholm Exchange, from which it expects to raise about 4.6 billion in Swedish krona.

After the IPO and debt-reduction, the company’s debt-protection metrics will likely improve, S&P said.

However, assuming that the IPO is successful, the overall rating also would depend on the group’s stated financial policy post the offering, the agency added.

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