Netherlands-Based Retailer Hema Upgraded To 'B-' On Completion Of Refinancing; Outlook Stable

Netherlands-based general merchandise and food retailer Hema has completed the refinancing of its existing debt maturities by issuing €600 million of senior secured notes and €150 million of senior unsecured notes, and upsizing its revolving credit facility to €100 million. We consider that this refinancing has stabilized the group's capital structure and liquidity position, and comfortably extended its debt maturities. Accordingly, we are raising our long-term corporate credit rating on Hema by one notch to 'B-'. We are also removing the ratings from CreditWatch positive. The stable outlook reflects our view that, following the successful refinancing, Hema will continue to gradually improve its profitability on the back of small like-for-like sales growth and moderate store expansion, maintaining its EBITDAR interest

...+ Netherlands-based general merchandise and food retailer Hema has completed the refinancing of its existing debt maturities by issuing 600 million of senior secured notes and 150 million of senior unsecured notes, and upsizing its revolving credit facility to 100 million. + We consider that this refinancing has stabilized the group's capital structure and liquidity position, and comfortably extended its debt maturities. + Accordingly, we are raising our long-term corporate credit rating on Hema by one notch to 'B-'. We are also removing the ratings from CreditWatch positive. + The stable outlook reflects our view that, following the successful refinancing, Hema will continue to gradually improve its profitability on the back of small like-for-like sales growth and moderate store expansion, maintaining its EBITDAR interest coverage of around 1.4x and adjusted debt-to-EBITDA ratio of around 7.5x over the next year. LONDON (S&P Global Ratings) July 24, 2017--S&P Global Ratings said today...

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