Peer Holding III B.V. (Action) Upgraded To 'BB' On Consistently Strong Operating Performance; Outlook Stable

Peer Holding III B.V., the parent company of the Netherland-based value retailer Action, intends to issue a $1 billion term loan B (TLB) and use the proceeds to fund part of the payment to its shareholders. We anticipate that the shareholder distributions and any share buybacks will total up to €1.4 billion, and will also comprise the accumulated surplus cash of about €486 million. Post-transaction, Action's liquidity will remain adequate and credit metrics relatively conservative including debt to EBITDA of about 3.0x in 2023 compared to 2.8x in 2022. At the same time, we acknowledge Action has significantly improved its scale, geographic diversification, and profitability over the past few years, proving the success and resilience of its business model through

...October 12, 2023 - Peer Holding III B.V., the parent company of the Netherland-based value retailer Action, intends to issue a $1 billion term loan B (TLB) and use the proceeds to fund part of the payment to its shareholders. We anticipate that the shareholder distributions and any share buybacks will total up to 1.4 billion, and will also comprise the accumulated surplus cash of about 486 million. - Post-transaction, Action's liquidity will remain adequate and credit metrics relatively conservative including debt to EBITDA of about 3.0x in 2023 compared to 2.8x in 2022. - At the same time, we acknowledge Action has significantly improved its scale, geographic diversification, and profitability over the past few years, proving the success and resilience of its business model through the cycle. - We therefore raised our long-term issuer credit and issue ratings on Action's parent Peer Holding III B.V. and its senior secured debt to '##' from '##-'. Also, we assigned a '##' issue rating and...

Ratings Action