S&P: Baxi Holdings on watch

Standard & Poor's said it placed its BB- corporate credit rating on Baxi Holdings Ltd. on CreditWatch with negative implications, reflecting concerns that the company's near-term credit metrics could be negatively affected by the challenges being faced in its key U.K. market.

Heating Finance plc's B rating on its senior secured debt, which is guaranteed by Baxi, is also affected.

The ratings continue to reflect Baxi's highly leveraged financial profile, narrow product focus and significant reliance on the U.K. market for about 50% of EBITDA, the agency said.

These factors are somewhat mitigated by the company's strong market positions in the U.K. and Spanish heating markets, S&P added.

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