S&P affirms Hyperion on loan add-on

S&P said it affirmed its B rating on Hyperion Insurance Group Ltd.

The outlook is stable.

At the same time, the agency affirmed the B issue ratings on the company’s $750 million term loan (to be upsized to $850 million) and on its £85 million revolving credit facility. The recovery rating is unchanged at 4, indicating an expectation of recovery in the higher half of the 30%-50% range for creditors in the event of a payment default.

S&P said the affirmation follows Hyperion's announced intention to issue a $100 million add-on to its $750 million term loan facility.

The expiration of the majority of Hyperion's acquisition-related deferred and contingent liabilities in financial year 2017, coupled with its strong organic and inorganic revenue and EBITDA growth in 2016, means that the company can accommodate the additional debt within the current rating level under our forecasts – albeit with limited rating headroom to issue additional incremental debt, the agency explained.

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