S&P rates Bach Finance loans B

S&P said it assigned a B long-term corporate credit rating to Bach Finance Ltd., the parent company of Nord Anglia Education Inc.

The outlook is stable.

The agency also said it assigned a B long-term issue rating to Bach's proposed $1.23 million euro-denominated first-lien loans.

S&P also said it assigned a 3 recovery rating to the first-lien loans, indicating 50% to 70% expected default recovery.

As a result of the completion of Bach's acquisition of Nord Anglia, the agency said it will discontinue all ratings under Nord Anglia, including the issue ratings on its guaranteed loans, notes and revolving credit facility.

Bach is the holding vehicle for a consortium led by Baring Private Equity Asia and Canada Pension Plan Investment Board, S&P explained.

The ratings reflect Bach's good cost controls, high revenue growth and steady cash flow, which should temper the risks from its high leverage, the agency said.

S&P said it expects Bach's debt-to-EBITDA ratio to rise to 11x to 12x in fiscal 2017 from 7.7x in fiscal 2016 due to the buyout of Nord Anglia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.