S&P affirms Galaxy Finco

S&P said it affirmed its B long-term corporate credit rating on Galaxy Finco Ltd. (trading as Domestic & General; D&G) and core financing subsidiary Galaxy Bidco Ltd. The outlook is stable.

At the same time, S&P affirmed its B issue rating on the £175 million senior secured floating-rate notes maturing in 2019 and the £200 million senior secured notes maturing in 2020, issued by Galaxy Bidco. The recovery rating on both the senior secured floating-rate notes and the senior secured notes is 4, indicating an expectation of average recovery prospects (30%-50%; rounded estimate: 45%) in the event of a payment default.

S&P also affirmed its CCC+ issue rating on the £125 million senior notes maturing in 2021, issued by D&G. The recovery rating on the senior notes is 6, indicating an expectation of negligible (0%-10%; rounded estimate: 0%) recovery for lenders in the event of a payment default.

“The affirmation primarily reflects D&G's stable operating performance in financial 2017 (ending March), with revenue growth of about 11% driven by new contract wins in the U.K. and growth in international markets,” S&P said in a news release.

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