Research Update: Motor Fuel Group 'B' Ratings Affirmed; Outlook Remains Negative; Proposed Incremental First-Lien Debt Rated 'B'

U.K.-based Motor Fuel Group (MFG) has announced that it will use £170 million of on-balance-sheet cash and additional borrowings of about £230 million to pay shareholder dividends totaling £390 million. Following the distribution, we expect MFG's S&P Global Ratings-adjusted debt to EBITDA will reach about 7.0x, commensurate with the existing 'B' issuer credit rating and our assessment of the company's financial policy. We are affirming our 'B' long-term issuer credit rating on the parent company, CDR Firefly 4 Ltd. (Motor Fuel Group). We are assigning our 'B' issue rating with a '3' recovery rating to the company's proposed senior secured term loan B2 incremental loan, and affirming the ratings on the existing term loan B2 facility. We are also assigning

...- U.K.-based Motor Fuel Group (MFG) has announced that it will use ú170 million of on-balance-sheet cash and additional borrowings of about ú230 million to pay shareholder dividends totaling ú390 million. - Following the distribution, we expect MFG's S&P Global Ratings-adjusted debt to EBITDA will reach about 7.0x, commensurate with the existing 'B' issuer credit rating and our assessment of the company's financial policy. - We are affirming our 'B' long-term issuer credit rating on the parent company, CDR Firefly 4 Ltd. (Motor Fuel Group). - We are assigning our 'B' issue rating with a '3' recovery rating to the company's proposed senior secured term loan B2 incremental loan, and affirming the ratings on the existing term loan B2 facility. We are also assigning our '###+' issue rating with a '6' recovery rating to the company's proposed second-lien incremental loan, and affirming the ratings on the existing second-lien facility. - The negative outlook reflects our view of MFG's limited...

Research Update