S&P rates Louvre BidCo notes BB-

S&P said it assigned a BB- long-term issue rating to the new senior secured notes of Louvre BidCo, the nonoperating holding and consolidating company of Promontoria MCS (BB-/stable/--). The recovery rating on the new debt is 4, indicating an expectation of meaningful recovery (30%-50%; rounded estimate: 40%) in the event of a payment default.

“This issuance does not affect our issuer credit rating or outlook on MCS, since we already considered it in July following MCS' announcement of its acquisition of DSO,” S&P said in a news release.

“Our BB- rating on Louvre BidCo's existing senior secured debt is unchanged. However, we are revising our recovery rating to 4 from 3. This is because we use a more conservative enterprise value for the debt servicing business than in our initial assessment, now excluding any expected growth for this activity.”

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