S&P gives BB+ to Hornbach-Baumarkt notes

Standard & Poor's said it assigned its BB+ issue rating to the proposed €250 million unsecured notes due 2020 to be issued by Hornbach-Baumarkt AG (BB+/stable/--).

The issue rating is in line with the corporate credit rating on Baumarkt. At the same time, S&P assigned a recovery rating of 3 to the proposed notes, indicating an expectation of meaningful (50%-70%) recovery for creditors in an event of payment default.

S&P said that it understands that Baumarkt will use the proceeds of the proposed notes to fund the redemption of its existing 6 1/8% senior notes due 2014. Therefore, S&P said it expects to withdraw its BB+ issue rating and 3 recovery rating on the existing notes when the notes have been redeemed in full and on successful issuance of the proposed €250 million notes due 2020.

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