S&P trims Elli Investments

Standard & Poor’s said it lowered its corporate credit rating on Elli Investments Ltd. to CCC- from CCC+. The outlook is negative.

At the same time, S&P lowered the issue rating on Elli’s £40 million super-senior term loan due 2017 to B- from B+. The recovery rating on the super-senior term loan is 1+, indicating an expectation of full (100%) recovery in the event of a payment default.

S&P also lowered the issue rating on Elli’s £350 million senior secured notes due 2019 to CCC- from B. S&P revised down the recovery rating on these notes to 3L, indicating an expectation of very high (50%-70%; lower half of the range) recovery prospects in the event of a payment default.

In addition, S&P lowered the issue rating on Elli’s £175 million senior unsecured notes due 2020 to C from CCC+. The agency revised down the recovery rating on these notes to 6, indicating an expectation of low recovery prospects (in the 0%-10% range) in the event of a payment default.

S&P said the downgrade reflects S&P’s view that FSHC’s operating performance will be weaker than previously anticipated and that S&P does not expect any material improvement in 2016, leading to further pressure on the group's negative free operating cash flow generation.

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