Motor Fuel Group 'B' Ratings Affirmed; Outlook Remains Negative; Proposed Incremental First-Lien Debt Rated 'B'

U.K.-based Motor Fuel Group (MFG) has announced that it will use £170 million of on-balance-sheet cash and additional borrowings of about £230 million to pay shareholder dividends totaling £390 million. Following the distribution, we expect MFG's S&P Global Ratings-adjusted debt to EBITDA will reach about 7.0x, commensurate with the existing 'B' issuer credit rating and our assessment of the company's financial policy. We are affirming our 'B' long-term issuer credit rating on the parent company, CDR Firefly 4 Ltd. (Motor Fuel Group). We are assigning our 'B' issue rating with a '3' recovery rating to the company's proposed senior secured term loan B2 incremental loan, and affirming the ratings on the existing term loan B2 facility. We are also assigning

...November 28, 2019 - U.K.-based Motor Fuel Group (MFG) has announced that it will use ú170 million of on-balance-sheet cash and additional borrowings of about ú230 million to pay shareholder dividends totaling ú390 million. - Following the distribution, we expect MFG's S&P Global Ratings-adjusted debt to EBITDA will reach about 7.0x, commensurate with the existing 'B' issuer credit rating and our assessment of the company's financial policy. - We are affirming our 'B' long-term issuer credit rating on the parent company, CDR Firefly 4 Ltd. (Motor Fuel Group). - We are assigning our 'B' issue rating with a '3' recovery rating to the company's proposed senior secured term loan B2 incremental loan, and affirming the ratings on the existing term loan B2 facility. We are also assigning our '###+' issue rating with a '6' recovery rating to the company's proposed second-lien incremental loan, and affirming the ratings on the existing second-lien facility. - The negative outlook reflects our view...

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