S&P rates Groupe Labco notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Groupe Labco SAS and a B+ rating to its proposed €500 million senior secured notes maturing in 2018. The recovery rating is 4 to reflect expectation of 30% to 50% recovery.

The outlook is stable.

"The ratings reflect our assessment of Labco's financial risk profile as highly leveraged after a series of partly debt-funded, predominantly small-sized, acquisitions since the company was founded in 2003," said Standard & Poor's credit analyst Olaf Toelke.

Labco's highly leveraged financial risk profile is reflective of management's aggressive acquisition policy. Owing to about 70 mainly bolt-on acquisitions since 2003, Labco's fully adjusted debt-to-EBITDA leverage is expected to have been about 5.5x at year-end 2010, the agency said.

"They also reflect our view of Labco's fair business risk profile, supported by an expanding underlying market and the company's increasing presence as one of the industry's consolidators."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.