S&P rates Hornbach-Baumarkt notes BB-

Standard & Poor's said it assigned its BB long-term corporate credit rating to both Germany-based home-improvement retailer Hornbach Holding AG and to operating company Hornbach-Baumarkt-AG.

The outlook is stable.

At the same time, S&P assigned its BB- senior unsecured debt rating to the proposed €200 million bond to be issued by the Hornbach-Baumarkt-AG parent company. The bond is to be guaranteed by Baumarkt's main operating subsidiaries, reflecting its contractual subordination to higher priority debt.

S&P said the ratings reflect Hornbach's aggressive financial profile and debt-coverage ratios, partly mitigated by the company's proven and successful business model, which is well suited to the competitive German "Do-it-yourself" market.

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