S&P downgrades Aenova

S&P Global Ratings said it lowered its long-term corporate credit rating on Aenova Holding GmbH (Aenova) to B- from B. The outlook is stable.

At the same time, S&P lowered its issue rating on the company's €500 million first-lien senior secured debt and €75 million revolving credit and acquisition facilities to B- from B, and the issue rating on the company's €139 million second-lien facility to CCC from CCC+.

S&P’s recovery rating on the second-lien loan is unchanged at 6. S&P revised the recovery rating on the first-lien loan to 3 from 4. Expectations are in the lower half of the 50%-70% range for the first-lien loan and in the 0%-10% range for the second-lien facility.

S&P said the downgrade reflects its view that Aenova's profitability and cash generation remain weak, as the company still faces materially higher costs related to the company's historical acquisitive focus.

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