S&P rates Akita debt B

S&P said it assigned a B issuer credit rating to Akita Midco Sarl, along with B ratings to its first-lien debt.

Akita is the parent company of Azelis Finance SA, which was acquired by private equity EQT VIII fund and the Public Pension Investment Board, S&P explained.

The transaction's financing package is in line with preliminary assumptions, including €1.1 billion in term loans.

The first-lien debt at Azelis Finance also has been fully repaid, S&P said.

A stable outlook was assigned to Akita, reflecting an expectation of the group's positive free cash flow in the coming years and favorable interest coverage ratios, the agency said.

The company will be highly leveraged at closing, but its recurring positive free cash flow and growth prospects are expected to result in leverage reduction over time, S&P said.

The ratings are supported by the company's relative resilience as a fairly diversified chemical products distributor, the agency said, and favorable interest coverage ratios for forecast EBITDA and funds from operations.

The company's size and scope are considered relative weaknesses, S&P said.

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