S&P revises N&W outlook to negative

S&P said it revised the outlook on N&W Global Vending SpA to negative from stable and affirmed its B long-term corporate credit rating.

The agency also affirmed the B+ issue rating on N&W's super senior €40 million revolving credit facility. The recovery rating is unchanged at 2, indicating an expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of payment default.

S&P affirmed the B issue rating and revised the recovery rating on N&W's €410 million senior secured notes to 4 from 3, including the €40 million proposed tap issuance. This indicates an expectation of average (30%-50%; rounded estimate: 45%, down from 50%) recovery.

Finally, the agency affirmed the CCC+ issue rating on the €100 million second-lien notes with the recovery rating unchanged at 6.

S&P said the negative outlook reflects its view that N&W could face some execution risks through the several acquisitions it is planning to finalize in a relatively short time.

The agency also noted that the company is demonstrating an increasing appetite for growth through external debt-funded acquisitions than previously anticipated, and this could limit N&W's ability to reduce its leverage position.

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