S&P revises Keter view to negative

S&P said it revised its outlook on Keter Group BV to negative from stable and affirmed the B long-term issuer credit rating.

S&P also affirmed the B issue rating on the existing €1.01 billion term loan B due 2023 and the €110 million revolving credit facility. Keter's proposed €95 million tap of the term loan B does not affect the B rating on the existing term loan B.

The recovery rating on all issue ratings is 3, reflecting an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“Since Keter was taken over by BC Partners and PSP Investments in October 2016, the group has been transforming to become a fully integrated global operation. The group's profitability and cash flow generation however are no longer consistent with our expectations mainly due to restructuring and acquisition costs,” S&P said in a news release.

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