S&P upgrades Zobele

Standard & Poor’s said it raised the long-term corporate credit rating on Zobele Group to B+ from B.

The agency also said it raised the ratings on Zobele’s €180 million senior secured notes due 2018 to B+ from B. The recovery rating is unchanged at 4, reflecting 30% to 50% expected default recovery.

The outlook is stable.

The upgrades reflect an expectation of improvement in the group’s financial metrics following temporary erosion last year, S&P said.

The agency said it expects the five-year average debt-to-EBITDA ratio to improve and fall to less than 4.5x.

The company’s financial risk profile now is considered aggressive rather than highly leveraged, S&P said.

The ratings also consider Zobele’s weak business risk profile primarily due to the group’s fairly small scale of operations and its bargaining power with its customers, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.