Peer Holding, Parent To Netherlands-Based Discounter Action Holding, Assigned Preliminary 'B+' Rating; Outlook Stable

Netherlands-based nonfood discounter Action Holding B.V. (Action) has announced plans to refinance its current debt structure by issuing €1,125 million of a single new term loan out of a holding company, Peer Holding B.V., and upsizing its revolving credit facility to €75 million. Action intends to use this new funding, together with cash on the balance sheet of about €142 million, to refinance €730 million of existing term loans, distribute dividends of around €527 million, and cover fees. We are assigning our preliminary 'B+' long-term corporate credit rating to Peer Holding B.V. The stable outlook reflects our expectation that, following the refinancing and dividend payment, Action will continue to successfully implement its growth strategy on the back of sound operational

...+ Netherlands-based nonfood discounter Action Holding B.V. (Action) has announced plans to refinance its current debt structure by issuing 1,125 million of a single new term loan out of a holding company, Peer Holding B.V., and upsizing its revolving credit facility to 75 million. + Action intends to use this new funding, together with cash on the balance sheet of about 142 million, to refinance 730 million of existing term loans, distribute dividends of around 527 million, and cover fees. + We are assigning our preliminary 'B+' long-term corporate credit rating to Peer Holding B.V. + The stable outlook reflects our expectation that, following the refinancing and dividend payment, Action will continue to successfully implement its growth strategy on the back of sound operational execution, leading to sales and profit growth. In turn, this should result in a moderate reduction in leverage. LONDON (Standard & Poor's) Jan. 25, 2016--Standard & Poor's Ratings Services said today that it has...

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