S&P rates Atalian notes B+

S&P said it affirmed the B+ long-term corporate credit rating on La Financiere Atalian SAS (Atalian).

The outlook is positive.

S&P also said it assigned a B+ rating to the proposed €600 million senior unsecured notes.

The recovery rating is 4, indicating 30% to 50% expected default recovery.

The agency also said it raised the rating on Atalian's existing €400 million senior unsecured notes to B+ from B. The recovery rating is now 4.

The agency said it expects to withdraw the ratings on the existing senior unsecured notes upon refinancing with the proposed issuance.

The actions reflect a belief that Atalian's proposed full refinancing of its €400 million senior unsecured notes due in 2020 with €600 million proposed senior unsecured notes will have limited impact on its adjusted credit metrics, S&P said.

The company plans to use part of the proceeds from the refinancing to fund the group's acquisitive strategy, which will improve Atalian's EBITDA generation while reducing its reliance on the French market, the agency said.

Atalian operates in a highly competitive and fragmented sector with limited barriers to entry, fairly low margins and significant exposure to wage-cost inflation, S&P said.

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