S&P rates Giralda facilities B+

S&P said it assigned a B+ long-term issuer credit rating to Giralda Holding Conexion, SLU, along with a B+ rating and 3 recovery ratings to the group's senior secured facilities.

Giralda is the new intermediate holding company set up so that Intermediate Capital Group could acquire Konecta.

Giralda raised a new €320 million senior secured first-lien term loan B, supported by a €60 million first-lien revolving credit facility.

The stable outlook reflects an expectation that low single-digit-percentage GDP growth in Spain and Latin America will drive similar revenue growth for Konecta, the agency explained.

The company's adjusted EBITDA margins will be sustained at higher than 10% with an adjusted debt-to-EBITDA sustained at less than 5x, S&P said.

The ratings reflect Konecta's small scale, concentrated client base and the fragmented nature of the market in which it operates, the agency said.

The ratings are supported by its solid geographical diversification and relatively low leverage of 4.2x at the end of 2019, S&P said.

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