S&P rates Darty loans, notes BB-

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Darty plc.

The outlook is stable.

At the same time, the agency assigned its BB- issue rating to the proposed senior unsecured revolving credit facility due 2019 and senior unsecured notes due 2021, to be issued by Darty Financements SAS. The recovery rating on these instruments is 3, indicating an expectation of meaningful (50%-70%) recovery prospects in the event of a payment default.

S&P understands that, over the next few weeks, Darty plans to raise up to €500 million of new funding, roughly equally split between a revolving facility maturing in 2019 and senior unsecured notes due in 2021. This new financing will repay an existing €455 million revolver, of which €219 million was drawn at fiscal year-end 2013 (ended April 30, 2013).

S&P said the rating on Darty reflects its view of the company's "weak" business risk profile and "intermediate" financial risk profile.

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