S&P affirms Oberthur, removes positive watch

Standard & Poor’s said it affirmed the B- long-term corporate credit rating on Oberthur Technologies Group SAS and removed the rating from CreditWatch with positive implications, where it was placed in October 2015.

The agency also said it affirmed the B- rating on the company’s senior secured debt and CCC rating on its senior unsecured notes.

The recovery rating on the senior secured debt issued by Oberthur’s subsidiaries, Oberthur Technologies SA and Oberthur Technologies of America Corp. is 3, indicating 50% to 70% expected default recovery.

The recovery rating on the senior unsecured notes issued by Oberthur Technologies Group remains at 6, indicating 0 to 10% expected default recovery.

The outlook is positive.

The CreditWatch removal follows the revised assumption that the company will not pursue its initial public offering plan in the immediate future, S&P explained.

As a result, the agency said it does not expect any material change in the company’s capital structure with no debt reduction in the base case right now.

The outlook revision reflects a view that the company’s free operating cash flow will gradually improve after 2016 when the company completes its restructuring and improves its operating profitability, S&P said.

© 2015 Prospect News.
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