Rating Assigned To U.K. Corporate Securitization RAC Bond Co.'s Class B1 Notes; Outstanding Ratings Affirmed

OVERVIEW We have assigned our 'B (sf)' credit rating to RAC Bond Co.'s class B1-Dfrd notes. Our rating on the class B1-Dfrd notes reflects the rating on RAC Bidco (the Holdco), and our view that the uplift above the borrowing group's creditworthiness is limited due to the structural weaknesses of the issued bonds. At the same time, we have affirmed our 'BBB- (sf)' ratings on the class A1 and A2 notes. The borrower used the class B1-Dfrd notes' issuance proceeds, less transaction costs, to pay a dividend to RAC Midco II, the entity directly outside the securitization group, and transaction fees. The transaction blends a corporate securitization of the operating businesses of the obligors, RAC Bidco and its subsidiaries, which

...OVERVIEW + We have assigned our 'B (sf)' credit rating to RAC Bond Co.'s class B1-Dfrd notes. + Our rating on the class B1-Dfrd notes reflects the rating on RAC Bidco (the Holdco), and our view that the uplift above the borrowing group's creditworthiness is limited due to the structural weaknesses of the issued bonds. + At the same time, we have affirmed our '###- (sf)' ratings on the class A1 and A2 notes. + The borrower used the class B1-Dfrd notes' issuance proceeds, less transaction costs, to pay a dividend to RAC Midco II, the entity directly outside the securitization group, and transaction fees. + The transaction blends a corporate securitization of the operating businesses of the obligors, RAC Bidco and its subsidiaries, which include the borrower, but exclude RAC Insurance, with a subordinated high-yield issuance. LONDON (S&P Global Ratings) July 14, 2017--S&P Global Ratings today assigned its 'B (sf)' credit rating to RAC Bond Co. PLC's ú275 million fixed-rate class...

Ratings Action