S&P cuts Lecta floaters to 4

Standard & Poor's said it revised its recovery rating on the €598 million senior secured floating-rate notes issued by Lecta SA (B+/stable/B) to 4 from 3.

The revised recovery rating of 4 indicates S&P's expectation of average recovery in the event of a payment default.

The senior secured issue rating remains unchanged at B+, at the same level as the corporate credit rating, the agency said, noting that the issue and recovery ratings on Lecta's unsecured debt remain unchanged.

According to S&P, the issue-level rating on Lecta's €150 million unsecured notes is B-, two notches lower than the B+ corporate credit rating.

"The change in the recovery rating on the senior secured floating-rate notes reflects a continuous deterioration of trading conditions in coated wood-free paper markets," said S&P recovery analyst Abigail Klimovich.

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