S&P gives Cirsa notes B-

S&P said it gave B- issue and 3 recovery ratings to Cirsa Enterprises SLU’s planned €350 million of senior secured notes to partly refinance upcoming maturities of about €560 million of notes due in December 2023.

“Consequently, we revised the outlook on Cirsa to positive from stable and affirmed our B- ratings on the company and its senior secured debt. We also affirmed at CCC the issue rating on the €468 million of payment-in-kind (PIK) notes outstanding, issued by LHMC Finco 2. The recovery ratings are unchanged at 3 and 6, respectively,” the agency said in a press release.

The improved outlook indicates the possibility of an upgrade over the next 12 months if Cirsa refinances its notes due December 2023 such that they are comfortably covered by the planned new issuance and liquidity available, while preserving sound cash availability for operational purposes, S&P explained.

“Ratings upside will also hinge on consistent operating performance such that leverage declines below 6x and FOCF to debt is sustainably above 5%,” the agency said.

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