S&P lowers Atalian view to negative

S&P said it revised the outlook on La Financier Atalian SAS (Atalian) to negative from positive.

The agency also said it affirmed the company's B+ long-term issuer credit rating.

S&P also said it affirmed the B+ rating on Atalian's existing €625 million senior notes due 2024.

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

S&P also said it assigned a B+ rating to the proposed seven-year €610 million senior unsecured notes with a recovery rating of 4.

The actions follow news that Atalian reached an agreement to acquire Servest Ltd. for a cash consideration of €610 million, including €94 million related to Servest's 28.8% equity investment in Getronics Services UK Ltd.

The acquisition is almost fully debt-financed and will therefore result in a material, but temporary, deterioration in the group's credit metrics, the agency said.

Nevertheless, S&P said it expects the combined group's EBITDA generation to support a rapid de-leveraging and improvement in credit metrics.

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