Fitch gives Springer Nature loans BB+

Fitch Ratings said it assigned Springer Nature Deutschland GmbH senior secured instrument ratings of BB+ with an RR2 recovery rating, reflecting the application its "Corporates Recovery Ratings and Instrument Ratings Criteria".

The issuer has an $863.13 million term loan, a €2.15 billion term loan and a €250 million revolver. All three loans are floating-rate and are due in 2026.

The agency also gave parent Springer Nature AG & Co. KGaA a first-time long-term issuer default rating of BB- with a stable outlook.

“Springer Nature's ratings are based on the company's leading position in the publication of science, technical and medical (STM) content through its research segment, and the inherent resilience of the academic publishing market, driven by growing research and development funding. We estimate that the company's strong profitability and cash flow generation, combined with a prudent financial policy, should allow it to reduce leverage in the coming years, although leverage will remain high compared with higher-rated peers,” Fitch said in a press release.

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