S&P drops EMI

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on EMI Group plc to B+ from BB-, following news of a recommended cash offer for the entire capital of EMI by Maltby Ltd.

At the same time, the senior unsecured debt ratings on related entities Capitol Records Inc. and EMI Group Finance (Jersey) Ltd. were also lowered to B+ from BB-, the agency said, adding that all long-term ratings on EMI and related entities remain on CreditWatch with negative implications.

In addition, the B short-term corporate credit rating on EMI was placed on CreditWatch with negative implications, S&P said.

The cash offer for EMI from Maltby comes at a relatively high multiple of 18.5x EBITDA, reported for the 12 months to March 31, and carries limited regulatory risk, the agency noted.

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