S&P rates Elster, notes BB-

Standard & Poor's said it assigned a preliminary BB- corporate credit rating to Elster Group SE, along with a preliminary BB- rating to Elster Finance BV's proposed €250 million senior unsecured notes due 2018.

The preliminary recovery rating is 3, indicating 50% to 70% expected recovery in a default.

The proceeds will be used to refinance existing debt.

The outlook is stable.

The ratings reflect the company's fair business risk profile and aggressive financial risk profile, as well as its position as one of the world's largest providers of gas, electricity and water meters, S&P said.

Elster holds leading positions across all segments in which it operates and has the potential to gain market share from smaller competitors in the market by taking advantage of the move toward automated meter reading, the agency said.

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