S&P rates Alison LuxCo loans B, CCC+

Standard & Poor’s said it assigned its B long-term corporate credit rating to Alison LuxCo Sarl. The outlook is stable.

At the same time, S&P assigned its B issue rating to the proposed first-lien senior secured debt, comprising a €40 million revolving credit facility and a €310 million term loan B. The recovery rating on these facilities is 3, reflecting expectations of meaningful (50%-70%) recovery in a default scenario.

S&P also assigned a CCC+ issue rating to the €120 million second-lien senior secured term loan. The recovery rating on these notes is 6, reflecting expectations of negligible (0%-10%) recovery.

The ratings on Alison, the top holding company of Arvos Group and formerly the auxiliary components business of French industrial group Alstom SA, reflect S&P’s view of the group’s aggressive capital structure as a result of the leveraged buyout by private equity group Triton.

“We assess Alison’s financial risk profile as ‘highly leveraged,’” S&P said in a news release.

“We assess Alison’s business risk profile as ‘weak,’ based primarily on the group’s exposure to cyclical and mature end markets,” the agency added.

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