Switzerland-based vending services operator Selecta Group B.V. has underperformed against our expectations in terms of EBITDA and cash flow generation in fiscal year 2015 and the first half of 2016. As a result, we are lowering our long-term corporate credit rating on Selecta to 'B' from 'B+' and placing the rating on CreditWatch negative. The CreditWatch placement reflects the possibility that we could further lower the ratings, depending on how we assess the group's revenue and margins prospects and cash flow generation in fiscal years 2016 and 2017, and consequently management's ability to preserve a solid liquidity profile with adequate covenant headroom. On June 22, 2016, S&P Global Ratings lowered its long-term corporate credit rating on Switzerland-based Selecta Group B.V.
