S&P puts Groupe Ecore on positive watch

S&P said it placed all its Groupe Ecore Holding SAS ratings on CreditWatch with positive implications.

The placement follows its Jan. 4 announcement its shareholders entered into exclusive talks with competitor Derichebourg Group over the sale of its entire capital stock, the agency said.

S&P noted it could raise its Ecore ratings, including the CCC+ issuer rating by several notches once the takeover is complete.

“According to our calculations – which use Derichebourg’s market capital (about €1 billion) as well as both companies’ capital structure and profitability as a reference – the combined entity could report net debt to EBITDA of 3.5x-4x, which is considerably lower than Ecore’s current reported net debt to EBITDA exceeding 5x,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.