Fitch rates Mehilainen Yhtyma loan B+

Fitch Ratings said it assigned Mehilainen Yhtyma Oy's proposed term loan issue of €380 million an expected rating of B+ with a recovery rating of RR3.

Mehilainen will use the proceeds and added equity of €165 million to fund the acquisition of Pihlajalinna Oyj and for general corporate purposes.

The agency said it considers the acquisition rating neutral.

“Strategically, Mehilainen will benefit from increased exposure to the growing public outsourcing market, and consequently additional business volumes with a more prominent market position with public clients, as municipalities look to improve healthcare services and address budgetary deficits against rising healthcare costs,” Fitch said in a press release.

Fitch also affirmed Mehilainen's long-term issuer default rating at B with stable outlook.

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