S&P rates Financiere Mendel loan B+

S&P said it affirmed the B+ rating on Financiere Top Mendel, the holding company of Céva Santé Animale.

The agency also said it assigned a B+ rating to the company's proposed €2 billion term loan B, issued by Financiere Mendel SAS.

The outlook is stable.

The company is raising a €2 billion term loan B, €100 million revolving credit facility and €50 million capital expenditure facility.

The proceeds will be used to refinance existing debt, repay a €232 million payment-in-kind instrument and finance development needs, S&P said.

The stable outlook reflects a view that investments will translate into profitable growth, resulting in EBITDA after any restructuring costs of €300 million by 2020, the agency said, and adjusted debt-to-EBIDTA to 8x.

The ratings reflect a view that Ceva will continue to advance its position in the animal health market, supported by solid research and development and manufacturing expertise, S&P said.

Ceva benefits from its very diversified earning base with no product representing more than 6.5% of group revenue, the agency said.

Despite a challenging 2018, Ceva's performance was relatively stable with sales of €1.061 billion, down 3.4% from last year, S&P said.

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