S&P: Bilbao (Luxembourg) notes CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to Bilbao (Luxembourg) SA, the parent holding company for Befesa Medio Ambiente.

The outlook is stable.

In addition, the agency assigned its CCC+ issue rating to Bilbao (Luxembourg)'s €150 million payment-in-kind toggle notes. The recovery rating on this instrument is 6, indicating an expectation of negligible (0%-10%) recovery for creditors in the event of a payment default.

The ratings are in line with the preliminary ratings assigned on Oct. 15. S&P assigned the ratings following the successful issuance of €150 million PIK notes by Bilbao (Luxembourg). The final capital structure is in line with the preliminary structure.

S&P said the rating on Bilbao (Luxembourg) reflects its assessment of Bilbao (Luxembourg)'s business risk profile as "fair" and its financial risk profile as "highly leveraged," in line with the preliminary assessment.

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