S&P upgrades Creganna

Standard & Poor’s said it raised the long-term corporate credit rating on Cregstar Bidco Ltd. (Creganna) to B+ from B.

The agency also said it raised the ratings on the $25 million credit facility and $185 million first-lien term loan issued by Cregstar Finance Ireland Ltd. to B+ from B. The recovery ratings remain at 3, indicating 50% to 70% expected default recovery.

S&P also said it raised the rating on the $90 million second-lien term loan issued by Cregstar Finance to B- from CCC+. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

The upgrades reflect Creganna’s improved financial risk profile to aggressive from highly leveraged on the back of stronger EBITDA and cash flow generation during the first nine months of 2015, S&P said.

The company’s forecasted adjusted debt-to-EBITDA ratio also is expected improve to less than 5x, the agency added.

The ratings are constrained by Creganna’s small size, relative product concentration and contract cancellation risk, S&P said.

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