S&P: HBI on developing watch

Standard & Poor's said it placed the BB- long-term corporate credit rating on Holding Bercy Investissement SCA (HBI) on CreditWatch with developing implications.

The agency also said it placed the BB- rating on the €350 million senior secured notes due 2020 issued by special-purpose vehicle Elior Finance & Co. SCA (Elior Finance) on CreditWatch with developing implications.

S&P also said it placed on developing watch the BB- issue ratings on the facility H1 loan that Elior Finance extended to HBI and the group's other senior secured facilities.

The CreditWatch placement reflects a view that HBI's credit metrics are weaker than forecasts when the BB- rating was assigned.

These current metrics are more consistent with a highly leveraged financial risk profile and the revised forecast does not see the potential for sufficient de-leveraging to produce metrics in line with the previous aggressive financial risk profile, S&P said.

However, should a planned initial public offering be successfully completed and proceeds used to repay a portion of its high-yield bond and the term loans, credit metrics could improve to sit comfortably within the aggressive category, the agency said.

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