S&P rates Befesa, facilities BB-

S&P said it assigned its preliminary BB- long-term corporate credit rating to Befesa SA, the new parent Befesa Medio Ambiente, and assigned a preliminary BB- rating to the two main instruments of the refinancing package, a €526 million term loan B and a €75 million revolving credit facility, both to be issued by Befesa SA.

The preliminary recovery rating is 3, indicating an expectation of meaningful recovery prospects (50%-70%; rounded estimate: 65%) for creditors in the event of a payment default.

At the same time, S&P placed the B ratings on Befesa Zinc SAU and Bilbao (Luxemburg) SA on CreditWatch with positive implications, and also placed the B issue-level rating on Befesa Zinc's €300 million senior secured notes and the CCC+ rating on Bilbao's €150 million payment-in-kind toggle notes on CreditWatch positive.

The outlook is stable.

The agency said the ratings reflect the fair business risk profile of its subsidiaries, and the group's financial risk profile and financial policy following the pricing of the IPO and expected subsequent completion of the refinancing process.

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