S&P affirms Cerba on add-on

Standard & Poor's said it affirmed the B+ long-term corporate credit rating on Cerba European Lab SAS.

The outlook is stable.

The agency also said it affirmed the B+ rating on Cerba's €445 million senior secured notes, including the proposed increase of €80 million due 2020. The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

The affirmation reflects a view that Cerba's plan to issue an additional €80 million of senior secured notes to finance its mergers and acquisitions strategy is in line with its growth strategy, S&P said, and will not lead its debt-protection metrics to deteriorate.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, the agency said.

The ratings also consider Cerba's strong cash generation and interest coverage, S&P said.

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