S&P ups Comdata

S&P said it raised its long-term issuer credit rating on Comdata SpA to CCC+ from SD and assigned CCC+ issue and 4 recovery ratings to the residual senior secured debt.

“The financial restructuring that Comdata has undertaken improves its liquidity and extends its debt maturity profile, but the debt burden remains considerable. After this restructuring, Comdata has reduced its senior secured debt facilities to €375 million from €595 million, and converted the residual €220 million of these facilities into quasi-equity instruments. We treat these instruments as equity-like, as we believe that the common-equity and noncommon-equity financing are sufficiently aligned,” S&P said in a press release.

The agency said it still considers Comdata’s capital structure as unsustainable. However, S&P does anticipate an improvement in EBITDA that will help lower the debt burden.

The outlook is positive.

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