S&P rates Boparan notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Boparan Holdings Ltd., along with a B+ rating to Boparan's £695 million senior unsecured notes. The recovery rating is 3, indicating 50% to 70% recovery in a default.

The outlook is stable.

The ratings reflect the group's highly leveraged capital structure following the acquisition of Northern Foods plc, S&P said.

This includes Boparan's proposed £695 million senior notes issue due 2018, and the raising of £40 million of senior revolving credit.

It also includes an additional £130 million of loan notes at Boparan Holdco Ltd., which is a super parent of the rated entity, following the merger of Boparan and Amber Foods Ltd. The proposed notes are unsecured with a bullet maturity in 2018.

The ratings are constrained by Boparan's financial leverage, which is viewed as high, S&P said, adding that the group is exposed to integration risks from its sizable acquisition.

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