S&P rates Dometic notes BB

S&P said it assigned a BB rating to Dometic Group AB's proposed senior unsecured notes with a benchmark amount of €500 million.

The rating on the proposed notes is at the same level as the long-term issuer credit rating on Dometic, reflecting the absence of significant subordination risk, S&P explained.

The recovery rating on the proposed notes is 3, indicating 50% to 70% expected default recovery.

S&P also said it affirmed the company's BB long-term issuer credit rating.

The outlook is stable.

The agency also said it affirmed the BB rating on Dometic's existing senior unsecured bank facilities. The recovery rating on these facilities is unchanged at 3, indicating 50% to 70% expected default recovery.

Dometic plans to issue senior unsecured notes amounting to €500 million, S&P said.

The company is expected to use about SEK4.3 billion to repurchase outstanding term loans and about SEK500 million to repay drawings under its revolving credit facility, with the remainder for general corporate purposes, the agency said.

The rating on the proposed notes is at the same level as the long-term issuer credit rating on Dometic Group, reflecting the absence of significant subordination risk, S&P said.

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