S&P rates Galaxy Bidco B

S&P said it affirmed the B long-term corporate credit rating on Galaxy Finco Ltd., which also is known as Domestic & General.

The agency also said it assigned a B long-term corporate credit rating on the company’s core financing subsidiary, Galaxy Bidco.

The outlook is stable.

S&P also said it affirmed the B rating on the £175 million senior secured floating-rate notes due 2019 and £200 million senior secured notes due 2020 issued by Galaxy Bidco.

The recovery rating on both the senior secured floating-rate notes and senior secured notes is 4, indicating 30% to 50% expected default recovery.

S&P also said it affirmed the CCC+ rating on the £125 million senior notes due 2021 issued by Galaxy Finco.

The recovery rating on the senior notes is 6, indicating 0 to 10% expected default recovery.

The ratings reflect the continued assessment of Domestic & General's highly adjusted leverage of debt-to-EBITDA of about 8x to 9x, S&P said.

The ratings also consider its improving free operating cash flow generation due to the group's continued strong operating performance in the United Kingdom, the agency said.

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