S&P rates Sarens notes BB

Standard & Poor’s said it affirmed the BB long-term corporate credit rating on Sarens Bestuur NV.

The agency also said it assigned a BB rating on the group’s €125 million senior unsecured notes issued by Sarens Finance Co. NV.

The recovery rating on this debt instrument is 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The rating reflects the company’s fair business risk profile and significant financial risk profile, S&P said.

The company has one of the world’s largest fleet of large cranes and a strong track record and reputation, the agency said.

The group’s wide geographic and end-market diversity reduces the cyclicality seen with many equipment-rental providers, S&P said. But, geographic diversity also increases logistical- and subcontracting-costs, the agency added.

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