S&P assigns B to Keter CCR, loan

S&P said it assigned a B long-term corporate credit rating to Keter Group BV.

The outlook is stable.

At the same time, the agency assigned a B issue rating to the company’s proposed €690 million term loan B due 2023, with a recovery rating of 3, reflecting an expectation of meaningful (50%-70%) recovery in the event of a payment default.

S&P said Keter enjoys market-leading positions in its niche segment of resin-based consumer products for household, hardware, outdoor, and leisure use and recorded revenues of €777.3 million (pro forma the combination of the Israeli operations with outside operations) and reported earnings of €132.7 million in 2015. The consumer plastics industry is largely fragmented – most players have a concentrated geographic presence, narrow product offering, and relatively small revenue base.

The agency considers that this supports Keter's ability to defend its market position in the medium-term.

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