S&P: MediArena to negative

Standard & Poor’s said it revised the outlook to negative from stable on MediArena Acquisition BV, the parent of Endemol Holdings BV and Shine Group.

The agency also said it affirmed MediArena’s B long-term corporate credit rating.

S&P also said it affirmed the B ratings on the group’s first-lien secured debt. The recovery rating on all the first-lien tranches is 3, indicating 50% to 70% expected default recovery.

The agency also said it affirmed the CCC+ rating on MediArena’s $457 million second-lien term loan due in 2022. The recovery rating on this instrument is 6, indicating 0 to 10% expected default recovery.

The outlook revision reflects risks to the group’s credit quality from one-time integration, legal- and restructuring-costs, which are hampering its operating performance and leverage, S&P said.

The group’s earnings and cash generation in 2014 and the first half of 2015 were weaker than expected, but S&P said it anticipates an improvement from 2016 onward as the impact of the non-recurring items lessens.

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