S&P rates Sigma loan B+

S&P said it assigned a preliminary B+ long-term issuer credit rating to Sigma HoldCo BV (Flora Food Group).

The outlook is stable.

The agency also said it assigned a preliminary B+ rating to the proposed €3.9 billion equivalent floating-rate senior secured term loan due in 2025, as well as to the proposed €700 million revolving credit facility due in 2024.

The recovery rating is 4, indicating 30% to 50% expected default recovery.

The subsidiaries, Sigma Bidco BV and Sigma US Corp., will issue the loan, which Sigma HoldCo and certain subsidiaries will guarantee, S&P explained.

S&P also said it assigned a preliminary B- rating to the €1.05 billion senior unsecured notes due in 2026.

The recovery rating on the unsecured debt is 6, indicating 0% recovery prospects, reflecting the subordinated nature of the notes, the agency said.

The ratings reflect the company's creditworthiness following Unilever's disposal of its spreads division to KKR, S&P said.

The ratings also consider the company's leading position in the margarine market with its various well-known international brands and an estimated 18% market share of value of the butter and margarine retail market, the agency said.

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