S&P affirms Edenred, bonds

Standard & Poor's said it affirmed its BBB+ long-term corporate credit rating on Edenred SA following the announced Embratec transaction. The outlook is stable.

At the same time, S&P affirmed the BBB issue rating on the group's €510 million bond, €250 million bond, €225 million bond and €500 million bond due in 2017, 2020, 2022 and 2025, respectively, as a result of structural subordination to the vouchers in circulation, which the agency considers to be priority liabilities.

The affirmation follows the announcement that Edenred will combine its Brazilian assets with Embratec, a Brazilian company providing expense management services.

Edenred will fund this transaction by making a R$790 million (roughly €183 million) cash payment to Embratec's shareholders, and contributing its Brazilian assets Ticket Car and Repom to the creation of a 65%/35% joint venture.

The agency understands that the transaction will lead to an annual revenue improvement of about €75 million.

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