S&P rates Tank & Rast loan BB, notes B

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Deutsche Raststatten Gruppe IV GmbH. Deutsche Raststatten Gruppe IV is a subsidiary of leading concession holder for German motorway services areas, Deutsche Raststatten Gruppe GmbH.

S&P refers to Deutsche Raststatten Gruppe and its subsidiaries together as Tank & Rast or the group.

At the same time, S&P assigned an issue rating of BB to the €1.45 billion senior secured facilities due in 2018 and 2019 issued by Deutsche Raststatten Holding GmbH. The recovery rating on these facilities is 2, indicating an expectation of substantial (70%-90%) recovery prospects in the event of a payment default.

S&P also assigned an issue rating of B to the €460 million second-lien notes due in 2020 issued by Deutsche Raststatten Gruppe IV. The recovery rating on these notes is 6, indicating an expectation of negligible (0%-10%) recovery prospects in the event of a payment default.

The assignment of ratings follows Deutsche Raststatten Gruppe IV's completion of a refinancing by issuing senior secured bank facilities, second-lien notes and a payment-in-kind instrument. The ratings reflect S&P's assessment of Deutsche Raststatten Gruppe IV's financial risk profile as "highly leveraged" and its business risk profile as "strong."

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