S&P rates Jacobs Douwe Egberts loans BB

Standard & Poor’s said it assigned its final BB long-term corporate credit rating to Charger OpCo BV, a Netherlands-based company set up to raise funds for the intended partnership of the coffee businesses of Mondelez International Inc. and D.E Master Blenders 1753 BV into a combined coffee and tea company called Jacobs Douwe Egberts.

The agency also said it assigned a final BB rating to Charger OpCo’s senior secured debt facilities, in line with the corporate credit rating.

The recovery rating on these facilities is 4, indicating 30% to 50% expected default recovery.

The outlook is stable.

The ratings reflect the company’s satisfactory business risk profile and aggressive financial risk profile, S&P said.

Jacobs Douwe Egberts is expected to have solid market positions in various regional markets and a varied portfolio of highly recognized brands, the agency said.

The group will have a relatively broad geographical spread of revenues with a large share of low-risk countries, S&P said.

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