Netherlands-based value retailer Action intends to fund a €760 million shareholder distribution and refinance its existing debt with the proceeds of a new €2,285 million term loan. We believe Action's credit metrics post-transaction remain commensurate with the 'B+' rating and our assessment of the group's financial policy. We are therefore affirming our 'B+' long-term issuer credit rating on Action's parent, Peer Holding III B.V. The recovery rating on the proposed instruments reflects the significant increase in the amount of senior secured debt post-transaction, and the relatively weak security and guarantee package, which includes a cap on the amount of upstream guarantees provided by Action Holding B.V. The stable outlook reflects our view that Action will continue to successfully implement its
