Research Update: Selecta Group B.V. Upgraded To 'CCC+' From 'SD' Following Completion Of The Distressed Exchange; Outlook Stable

Pan-European vending machine operator Selecta Group B.V. completed its debt exchange on Oct. 29, 2020, reducing its cash interest burden over the next two years and improving its liquidity position through continued support by its financial sponsor KKR. We expect performance to remain weak into 2021 as the COVID-19 pandemic continues to weigh on the group's operations. As such, we view the group as dependent upon favorable business, financial, and economic conditions to meet its long-term financial commitments. We are therefore raising our issuer credit rating on Selecta to 'CCC+' from 'SD' (selective default). We are raising our issue-level rating on the group's €150 million super senior revolving credit facility (RCF) to 'B' from 'CCC'. In addition, we are assigning

...- Pan-European vending machine operator Selecta Group B.V. completed its debt exchange on Oct. 29, 2020, reducing its cash interest burden over the next two years and improving its liquidity position through continued support by its financial sponsor KKR. - We expect performance to remain weak into 2021 as the COVID-19 pandemic continues to weigh on the group's operations. As such, we view the group as dependent upon favorable business, financial, and economic conditions to meet its long-term financial commitments. - We are therefore raising our issuer credit rating on Selecta to '###+' from '##' (selective default). We are raising our issue-level rating on the group's 150 million super senior revolving credit facility (RCF) to 'B' from '###'. In addition, we are assigning our '###+' issue rating to the 693 million first-lien notes and our '###-' issue rating to the 240 million second-lien notes. - The recovery rating on the super senior RCF remains unchanged at '1', indicating very high...

Research Update