S&P: AI Mistral loans B, CCC+

S&P said it is assigned B corporate credit ratings to AI Mistral Holdco Ltd. and its finance subsidiary, AI Mistral (Luxembourg) Subco Sarl.

The agency also said it assigned a B rating and 3 recovery rating to the company's secured first-lien term loans and CCC+ issue-level rating and 6 recovery rating to its secured second-lien term loan.

The company has a stable outlook, reflecting that its EBITDA growth was based on its expanding fleet, productivity gains and cost synergies.

These factors will support interest-coverage metrics commensurate with the ratings, including funds from operations cash interest coverage of more than 2x, S&P said.

S&P also said it should have applied its criteria "Key Credit Factors For The Business And Consumer Services Industry," (Business Services KCF) in assigning preliminary ratings to AI Mistral Holdco Ltd. back in January.

Instead, the agency said it used "Key Credit Factors For The Transportation Cyclical Industry."

So, S&P said it is correcting this error by using the Business Services KCF, the effect of which is reflected in the industry and profitability assessment.

In particular, the lower industry risk is counterbalanced by higher volatility of profitability among business services peers, the agency said.

But the use of the Business Services KCF has had no impact on the ratings, S&P said.

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