Bulletin: Garfunkelux Holdco 2 S.A. (Lowell) Ratings Unaffected By Announced Revolving Credit Facility Increase

LONDON (S&P Global Ratings) May 18, 2018--S&P Global Ratings said today that the 'B+/B' long- and short-term ratings and stable outlook on Luxembourg-based debt collection company Garfunkelux Holdco 2 S.A., which trades as Lowell, are unaffected by the announcement that it has increased its revolving credit facility (RCF) to €455 million from €200 million. We believe that the additional liquidity under the RCF will be used to fund the group's business growth. Lowell reported high growth in the first quarter of 2018, with cash income up 14% to £596 million, and portfolio acquisitions of £293 million in the past 12 months. The ratio of reported gross debt to the past 12 months' cash EBITDA was flat in the quarter at

...LONDON (S&P Global Ratings) May 18, 2018--S&P Global Ratings said today that the 'B+/B' long- and short-term ratings and stable outlook on Luxembourg-based debt collection company Garfunkelux Holdco 2 S.A., which trades as Lowell, are unaffected by the announcement that it has increased its revolving credit facility (RCF) to 455 million from 200 million. We believe that the additional liquidity under the RCF will be used to fund the group's business growth. Lowell reported high growth in the first quarter of 2018, with cash income up 14% to ú596 million, and portfolio acquisitions of ú293 million in the past 12 months. The ratio of reported gross debt to the past 12 months' cash EBITDA was flat in the quarter at 5.4x. The group's relatively high debt means that its credit metrics remain weak compared to those of its peer group. The increased size of the RCF does not change our expectation that the group's credit metrics will trend at the weaker ends of the following ranges over the next...

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