S&P gives Kiloutou, loan B+

S&P said it assigned its preliminary B+ long-term corporate credit rating to Kapla Holding 2 (Kiloutou).

The outlook is stable.

At the same time, the agency assigned its B+ issue rating to its proposed €670 million senior secured term loan B. The recovery rating is 4, indicating an expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of payment default.

S&P said the rating on Kiloutou reflects a view of the group's aggressive financial risk profile and weak business risk profile, at the higher end of the range.

“We think that Kiloutou's business risk profile is constrained by its small size of operations and limited scale,” the agency said in a news release.

“We also note that most of the company's earnings–about 90% of revenues–stem from France, which increases concentration risks.”

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