S&P drops Getronics loan recovery to 4

Standard & Poor's said it revised its recovery rating on Getronics NV's (B-/negative) €284 million senior secured credit facility to 4 from 3.

At the same time, the recovery rating was removed from CreditWatch with negative implications, where it had been placed on Jan. 19, the agency said.

"The recovery rating revision reflects a diminution in the value of Getronics' security package following asset disposals both completed and forthcoming and no consequent permanent debt reduction," said S&P credit analyst Marc Lewis.

S&P added that the rating on Getronics continues to reflect ongoing margin pressure in the company's core managed services operations, a very weak free cash flow track record and resulting aggressive debt measures.

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