S&P gives Lecta floaters BB-, B

Standard & Poor's said it assigned its BB- long-term and B short-term corporate credit ratings to Lecta SA.

The outlook is stable.

At the same time, €473 million in proposed senior secured floating-rate notes and €175 million in proposed senior unsecured FRNs were assigned long-term issue credit ratings of BB- and B, respectively, S&P added.

The secured issue has been assigned a recovery rating of 3, the agency said, noting that the ratings on Lecta reflect its exposure to the cyclical, competitive and currently challenging European coated fine paper market and limited integration to pulp, a key input.

The financial risk profile is aggressive with debt protection measures currently weak for the rating, the agency said.

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