S&P: SGD on developing watch

S&P said it placed the B long-term corporate credit rating on SGD Group SAS on CreditWatch with developing implications.

Also on developing watch are its core subsidiaries, SGD SA and SGD Kipfenberg GMBH, the agency said.

S&P also said it affirmed the B rating on €350 million senior secured notes issued by SGD Group. The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

The agency also said it raised the issue rating on the €45 million revolving credit facility issued by SGD and SGD Kipfenberg to BB- from B+ following the revision of the ranking of France’s insolvency regime.

The recovery rating on the revolver is 1, indicating a substantial recovery for lenders in a default.

The watch placement follows news that China Jianyin Investment Ltd. has entered into exclusive discussions with Oaktree to acquire SGD Group, S&P explained.

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