S&P: Scout24 on positive watch

Standard & Poor’s said it placed the B long-term corporate credit rating on the Scout24 AG on CreditWatch with positive implications.

The agency also said it placed the B rating on the company’s existing senior secured debt on positive watch. The recovery rating remains at 4, reflecting 50% to 70% expected default recovery.

S&P also said it withdrew the CCC+ rating on Scout24’s subordinated debt because the notes were repaid in the first half of 2015.

The CreditWatch placement primarily reflects projections of improved credit metrics following the Scout24 launch of its initial public offering on the Frankfurt Stock Exchange, the agency said.

After the IPO, most of the proceeds will be used to repay part of the company’s outstanding cash-paid debt, which will improve the group’s credit metrics, S&P said.

The IPO, subject to successful completion and final terms and conditions, could result in gross valuation between €625 million and €1.071 billion, the agency said.

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