Fitch rates Ashtead notes BBB

Fitch Ratings said it assigned Ashtead Capital Inc.’s planned benchmark-sized offering of senior unsecured notes an expected BBB rating.

“The new notes will be fully and unconditionally guaranteed by Ashtead Group plc (Ashtead, BBB/stable), and their rating is in line with Ashtead's BBB long-term issuer default rating (IDR), reflecting Fitch's expectation of average recovery prospects. As unsecured obligations, the notes rank behind Ashtead's asset-based senior secured revolving credit facility (ABL facility) presently totaling $4.5 billion, which is secured by a substantial majority of Ashtead's assets,” Fitch said in a press release.

The proceeds are expected to repay equivalent amounts drawn under the ABL facility. “Fitch does not therefore expect the transaction to materially affect Ashtead's leverage,” the agency said.

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