S&P rates Gerresheimer notes B-

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Gerresheimer Alpha GmbH, the new parent company of the Gerresheimer group. The outlook is stable.

The rating actions follow the group's acquisition by funds managed by The Blackstone Group.

In addition, S&P assigned its B+ corporate credit rating to the group's wholly owned subsidiary, Gerresheimer Holdings GmbH, and its B- debt rating to Gerresheimer Holdings' proposed €150 million senior notes. The outlook is stable.

"The ratings primarily reflect the increase in leverage that was needed to fund the acquisition of Gerresheimer by private equity funds managed by the Blackstone Group and subsequent refinancing," said S&P credit analyst Vanessa Brathwaite.

S&P said it expects Gerresheimer to increase operating cash flow in the next 12 months to a level that will allow the group to meet its debt service needs and fully fund capital expenditures.

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