S&P lifts Action, rates loan BB

S&P said it raised its ratings for Peer Holding BV, the parent of Action Holding BV), and its senior secured debt to BB from BB- and assigned BB issue and 3 recovery ratings (rounded estimate: 60%) to its planned $1 billion term loan.

“Action's consistently solid operating performance highlights the strength of its business model. We acknowledge Action's business risk profile has improved over the past few years as it has significantly enhanced its scale, geographic diversification, and profitability. We think Action has built a solid competitive edge based on operating efficiency and disciplined execution. This has enabled the group to sustain its strong operating performance through the economic cycles, with an impressive like-for-like performance (mainly driven by volume growth) and network expansion throughout Europe,” S&P said in a press release.

Peer plans to use the proceeds to fund part of the payment to its shareholders. “We anticipate that the shareholder distributions and any share buybacks will total up to €1.4 billion, and will also comprise the accumulated surplus cash of about €486 million,” the agency said.

The outlook is stable.

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