S&P cuts Scandferries to B+

Standard & Poor's said it lowered its long-term corporate credit rating on Scandferries Aps (known as Scandlines) to B+ from BB-.

The outlook is stable.

At the same time, the issue rating on the company's senior secured debt was lowered to BB- from BB. The recovery rating on the senior secured debt remains at 2, indicating an expectation of substantial (70%-90%) recovery in the event of a payment default.

S&P said the downgrade reflects Scandlines' more aggressive financial policy than it previously anticipated and the resulting reassessment of the influence of the company's financial sponsor (FS) ownership to "FS-6" from "FS-5," leading the agency to revise its view of the financial risk profile to "highly leveraged" from "aggressive."

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