S&P rates Garfunkelux notes B+

S&P said it revised the outlook on Garfunkelux Holdco 2 SA (Lowell) to stable from developing.

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

S&P also said it assigned a B+ rating and 3 recovery rating to the proposed senior secured notes and senior floating-rate notes issued by Garfunkelux 3.

The agency also affirmed the B+ rating on the existing senior secured notes issued by Garfunkelux 3 with an unchanged recovery rating of 3.

S&P also affirmed the BB rating on super senior revolving credit facility co-issued by Lowell Holding GmbH and Simon Bidco Ltd. with an unchanged recovery rating of 1; and the B- rating on the senior unsecured notes issued by Garfunkelux 2 with an unchanged recovery rating of 6.

The ratings and outlook revision reflect an expectation that the group's leverage will moderately weaken after the acquisition, the agency said.

Over time, successful integration of the acquired businesses has potential to further strengthen its position in the European debt-collection industry, S&P said.

Despite the challenges of higher leverage and a newly acquired business, the agency said it currently considers a negative outlook would overstate the likelihood of a possible future downgrade.

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