S&P affirms Britax

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Britax Group plc, following the group's announcement that it is to sell its Childcare division to the private equity house Carlyle Group for £230 million.

The outlook remains negative.

At the same time, S&P said it affirmed its B- subordinated debt rating on the group's €145 million notes due 2011.

The sale of Britax's Childcare division is expected to be neutral or mildly positive for the group's overall credit quality, the agency noted.

S&P said it believes Britax will utilize funds to reduce debt-servicing costs and help stabilize the group's financial profile, which should help to offset the weakening of the business profile brought about by the sale of the Childcare division.

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