Fitch assigns Labco notes BB-, revolver BB

Fitch Ratings said it assigned Labco SAS a long-term issuer default rating of B+, along with an expected BB- rating and expected recovery rating of RR3 on its planned senior secured notes.

The agency further assigned Labco's planned super senior revolving credit facility an expected rating of BB(exp) and an expected recovery rating of RR2(exp).

The outlook is stable.

Potential failure to reduce existing bank debt below levels expected by the agency could lead to debt amounts of prior ranking or maturing debt remaining in place, which could adversely affect the rating on the planned instruments, Fitch said.

In addition, the instrument rating would be affected by any adverse issuer default rating movement arising from a materially higher-than-expected interest rate on the planned notes, the agency added.

The ratings reflect Labco's leading position in European clinical laboratory servicing, a market that is stable, non-cyclical and underpinned by favorable underlying demographic and socio-economic conditions, Fitch said.

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