ข่าวประชาสัมพันธ์ Press Releases ข่าวย้อนหลัง หัวข้อข่าว บลอก

Rexel Proposed Senior Unsecured Notes Assigned #BB-# Issue Rating And #5# Recovery Rating

Stocks and Financial Services Press Releases วันจันทร์ที่ ๖ พฤศจิกายน พ.ศ. ๒๕๖๐ ๑๗:๔๖ น.
ขนาดตัวอักษร: ใหญ่ กลาง เล็ก
MILAN--6 Nov--S&P Global Ratings

MILAN (S&P Global Ratings) Nov. 6, 2017--S&P Global Ratings said today that it had assigned its 'BB-' issue rating and '5' recovery rating to the €500 million proposed senior unsecured notes due in 2025 to be issued by France-based electrical supplies distributor Rexel S.A. The '5' recovery rating indicates our expectation of modest recovery prospects (15%) for debtholders in the event of a payment default.

The recovery rating of '5' reflects the notes structural subordination to sizable prior-ranking liabilities (the four securitization programs and several other credit facilities at subsidiary level), combined with a significant amount of unsecured and unguaranteed debt, limited protection offered to noteholders, no restricted payments covenants, and reliance on payments from subsidiaries to service its obligations under the notes. We estimate recovery prospects at 15%, which provides limited headroom in the current recovery rating.

The issue and recovery ratings on the proposed notes are based on preliminary information and are subject to their successful issuance and our satisfactory review of the final documentation.

Rexel intends to use the proceeds of the proposed notes to redeem the existing €500 million senior unsecured notes maturing in 2022. We expect the proposed notes' documentation to be fully in line with that for the existing ones.

Additional debt will remain constrained only by a standard minimum 2.0x incurrence-based interest coverage ratio under the notes, with significant carve-outs and permitted debt baskets. The documentation will come without a restricted-payments covenant, which we view as negative. The documentation for the company's revolving credit facility includes a 3.50x net total leverage covenant, tested semi-annually, which can be breached three times: twice for a maximum 3.75x and once for a maximum of 3.90x. The cross-default and acceleration provisions threshold will remain in excess of €100 million.

In our hypothetical default scenario, we assume sustained economic slowdowns and increased competitive pressures in North and South America as well as Asia, leading to declining demand, shrinking distribution margins, and deteriorated payment discipline that will materially reduce Rexel's cash generation. We believe that this, combined with deteriorated capital markets and liquidity pressure, would prevent the company from refinancing or repaying its debt when it is due and trigger a payment default in or before 2022.

We value Rexel as a going concern, reflecting our view of the company's leading market positions and wide customer and end-market diversification.
Simulated default assumptions:
Year of default: 2022
Jurisdiction: France
Emergence EBITDA (after recovery adjustments): €317 million
---Minimum capital expenditures (capex) at 0.5%
---Cyclicality adjustment is +10%, in line with the specific industry sub-segment
---Operational adjustment: 10%, for further minimum capex need around 0.7% of sales (according to historical evidence and the company's expectations)
EBITDA multiple: 6.0x
Simplified recovery waterfall:
Gross recovery value: €1,901 million
Net recovery value for waterfall after administrative expenses (5%): €1,806 million
Estimated priority claims: €1,463 million
Unsecured debt claims: about €2,281 million
Recovery prospects: 15%
--Recovery rating: 5

ขนาดตัวอักษร: ใหญ่ กลาง เล็ก

ข่าวประชาสัมพันธ์ที่เกี่ยวข้อง

Odebrecht Engenharia e Construcao Downgraded To #B+# From #BB-#, On Watch Negative On Weakening Financial Flexibility

SAO PAULO (S&P Global Ratings) May 2, 2016--S&P Global Ratings lowered its global scale corporate credit rating on Odebrecht Engenharia e Construção S.A. (OEC) to 'B+' from 'BB-' and its national scale long-term rating to 'brBBB-'...

S&P: Performance review of MPF and HKSFC

According to a recent analysis conducted by Standard & Poor's Fund Services, the leading provider of fund research and analysis globally, the average MPF fund posted a loss of -13.65% since its inception in February of 2001. As compared to retail funds th...

หัวข้อข่าวที่เกี่ยวข้อง

หัวข้อข่าวยอดนิยม

กรมสรรพากร ธนาคารกรุงเทพ ธนาคารกรุงไทย ธนาคารออมสิน ไปรษณีย์ไทย การบินไทย ธนาคารกสิกรไทย hotmai เพียวริคุ jobbkk ธนาคารไทยพาณิชย์ คาราบาว ดีแทค ไทยพาณิชย์ แจ่มใส เมเจอร์ ธนาคารอาคารสงเคราะห์ 12car กรุงไทย ธนาคารกรุงศรีอยุธยา กระทรวงสาธารณสุข การรถไฟแห่งประเทศไทย มิตซูบิชิ เมืองทอง ธนาคารทหารไทย ตลาดหลักทรัพย์แห่งประเทศไทย ซัมซุง มาม่า วันทูคอล ธนาคารแห่งประเทศไทย กระทรวงพาณิชย์ เวลาประเทศไทย ปตท ธอส บิ๊กซี กรมอุตุ กรมศุลกากร แม็คโคร ธนาคารกรุงศรี กระทรวงการคลัง