S&P puts Cegedim on positive watch, rates notes B+

Standard & Poor's said it placed its B long-term corporate credit rating on Cegedim SA on CreditWatch with positive implications.

In addition, S&P placed its B issue rating on Cegedim's existing €280 million 7% unsecured notes due 2015 on CreditWatch positive, in line with the corporate credit rating. The recovery rating on these notes is 3, indicating an expectation of meaningful (50%-70%) recovery.

At the same time, the agency assigned a B+ issue rating to the group's proposed €300 million senior unsecured notes due 2020. The recovery rating on these notes is 4, indicating an expectation of average (30%-50%) recovery for creditors in the event of a payment default.

The CreditWatch placement follows Cegedim's recent announcement of a tender offer for its unsecured notes due 2015, conditional to the issuance of euro-denominated notes due 2020. S&P said it understands from Cegedim that the purpose of the offer is to proactively manage the company's debt maturity profile.

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