S&P raises Marcolin, loan, notes; rates notes B

S&P said it raised its long-term corporate credit rating on Marcolin SpA to B from B-.

The outlook is stable.

At the same time, the agency upgraded the issue rating on the existing €30 million revolving credit facility to B+ from B. The 2H recovery rating on the debt is unchanged.

S&P also upgraded the issue rating on Marcolin's existing €200 million senior secured notes to B from B-, with the 4H recovery rating unchanged.

At the same time, S&P said it assigned a B issue rating to Marcolin's proposed €250 million senior secured floating-rate notes maturing in 2023 with a recovery rating of 4L, indicating an expectation of recovery prospects of around 35%.

S&P said the upgrade reflects its view that the company is improving its market position in the global eyewear industry, and that – thanks to good operating performance – it will generate positive cash flow from the 2016 full-year results.

“Additionally, we believe that the newly announced joint venture (JV) agreement with LVMH Group is supportive from a business standpoint,” the agency said in a news release.

“Finally, the proposed refinancing transaction (with €250 million senior secured notes and a €40 million of super senior revolving credit facility [RCF]) will allow the company to extend its debt maturity profile and to reduce the cost of debt, improving the EBITDA interest coverage ratio.”

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