Fitch places McLaren on evolving watch

Fitch Ratings said it placed McLaren Holdings Ltd.'s long-term issuer default rating of B- and McLaren Finance plc's senior secured notes rating of B on rating watch evolving. The recovery rating on the notes is RR3.

“The RWE reflects uncertainty over MHL's recapitalization, which has been prolonged beyond our initial expectations to 2024. The change in capitalization could drive a change in our parent and subsidiary linkage (PSL) assumptions once its shareholder structure is simplified. Fitch also does not yet have clarity on the total recapitalization amount, or whether it is sufficient to cover the group's long-term funding needs,” the agency said in a press release.

Fitch said it plans to resolve the developing watch after the recapitalization is finished and it as greater clarity on MHL’s medium-term capital structure.

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