S&P rates Loyalty Partner, notes B

Standard & Poor's said it assigned its B long-term corporate credit rating to Loyalty Partner GmbH.

The outlook is stable.

At the same time, the agency said it assigned a B issue rating to the group's proposed €160 million of senior secured notes. The recovery rating on this debt is 3.

"The ratings on Loyalty Partner reflect its view of the group's highly leveraged financial risk profile after its proposed recapitalization and shareholder returns; and its limited scale of operations, including limited product, geographic, and customer diversification," said credit analyst Menique Smit.

"The ratings also reflect its view of the risks associated with the group's international development strategy, which requires large upfront expansion costs."

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