S&P lowers Lowell view to negative

S&P said it revised the outlook on Garfunkelux Holdco 2 SA (Lowell) to negative, reflecting a material risk that the company will not be able to achieve sustainably lower leveraged.

The agency also said it affirmed the company's B+ long-term and B short-term issuer credit ratings.

The recovery ratings on the outstanding super senior revolving credit facility, senior secured debt and unsecured debt are unchanged.

Thea agency also affirmed its B+ rating on the existing senior secured notes issued by Garfunkelux Holdco 3 SA. The recovery rating is unchanged at 4.

The BB rating on the super senior revolving credit facility co-issued by Lowell Holding GmbH and Simon Bidco Ltd. also was affirmed with a recovery rating at 1.

S&P also affirmed the B- rating the senior unsecured notes issued by Garfunkelux Holdco 2. The recovery rating is unchanged at 6.

The outlook revision reflects a view that leverage will remain high, at 5.25x to 5.50 in 2019, placing pressure on the group to accelerate de-leveraging from 2020 onward, the agency said.

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