Research Update: Business Integration Partners S.p.A Rated 'B' Post Structural Reorganizing; Outlook Stable; Bach Bidco Ratings Withdrawn

Business Integration Partners S.p.A (BIP) completed a reverse merger, which led to the incorporation of Bach Bidco SpA into BIP. We therefore assigned our 'B' long-term issuer credit rating to BIP and our 'B' issue rating to the existing €345 million first-lien senior secured notes, with a recovery rating of '3' indicating meaningful recovery prospects (50-70%; rounded estimate 50%) in the event of a payment default. The ratings are unchanged when compared with our previous credit assessment of Bach Bidco as, in our view, the company's credit quality is the same. At the same time, we withdrew our 'B' ratings on Bach Bidco and its debt, as Bach Bidco will not exist following the merger and debt has been transferred

...- Business Integration Partners S.p.A (BIP) completed a reverse merger, which led to the incorporation of Bach Bidco SpA into BIP. - We therefore assigned our 'B' long-term issuer credit rating to BIP and our 'B' issue rating to the existing 345 million first-lien senior secured notes, with a recovery rating of '3' indicating meaningful recovery prospects (50-70%; rounded estimate 50%) in the event of a payment default. The ratings are unchanged when compared with our previous credit assessment of Bach Bidco as, in our view, the company's credit quality is the same. - At the same time, we withdrew our 'B' ratings on Bach Bidco and its debt, as Bach Bidco will not exist following the merger and debt has been transferred to BIP. - The stable outlook indicates our expectation that BIP will continue to generate steady organic growth, based on secular market growth trends, an improved EBITDA base from acquisitions, and positive free operating cash flow (FOCF), supporting deleveraging toward...

Research Update