S&P rates Douglas loans B+

Standard & Poor's said it assigned a B long-term corporate credit rating to Douglas Holding AG.

The outlook is stable.

The agency also said it assigned a rating of B+ to Douglas' €830 million senior secured debt facilities due in 2018 and 2019 based on a recovery rating of 2, which indicates 70% to 90% expected recovery in a default.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, S&P said.

Growth potential in Douglas' home market is limited, given the company's high degree of market penetration, S&P added.

Its top-line growth trends in fiscal 2013 will be marginally positive at best, due to ongoing and difficult trading conditions and hesitant consumer spending, the agency said.

Factors that mitigate this include the company's competitive position with high customer recognition and market share, S&P said.

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