S&P upgrades Scout24, loans to BB-

S&P said it raised its long-term corporate credit rating on Scout24 AG to BB- from B+.

The outlook is stable.

The agency also upgraded its issue rating on Scout24's senior secured debt, comprising a €46 million senior secured revolving credit facility due 2021, €324 million outstanding under the senior secured term loan B due in 202 and €357 million outstanding under the senior secured term loan C due 2022, to BB- from B+. The recovery rating remains at 3, now reflecting an expectation of recovery in the higher half of the 50%-70% range in the event of default.

S&P said the upgrade reflects its expectation that Scout24's financial risk profile will strengthen thanks to a less aggressive financial policy following a recent change in its shareholder structure.

As such, the agency now nets the company's cash position to calculate its debt.

The rating action also takes into account S&P’s assumption that Scout24 will continue to see earnings growth on the back of strong results in the first half of 2016.

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