S&P affirms Louvre on acquisition news

S&P said it affirmed the BB- rating on Louvre Bidco, along with the BB- rating on its senior secured notes.

MCS & DSO, for which Louvre Bidco acts as the holding company, has agreed to acquire Italian debt servicer Sistemia.

The acquisition will be fully-debt financed, S&P explained.

As a result, the agency said it expects the group's leverage will increase, but will remain commensurate with the current rating, supported by its substantial amount of cash and its strengthened business risk profile, the agency said.

The stable outlook reflects a view that the group's credit ratios will remain relatively conservative for its ownership profile over the next 12 months, including gross debt-to-EBITDA at the lower end of the 4x to 5x range, S&P said.

Sistemia also will add geographical diversity to the group, which has so far operated exclusively in France, the agency said.

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