Sweden-Based Finance Co. Intrum Justitia Downgraded To 'BB+/B' On Proposed Merger; Outlook Stable

We expect that Intrum Justitia AB will complete the acquisition of Lock Lower Holdings by the end of June 2017, and we continue to believe that the merger will weaken Intrum's financial profile. We are downgrading Intrum to 'BB+/B' from 'BBB-/A-3', and removing the ratings from CreditWatch with negative implications. We are assigning a 'BB+' rating to Intrum's proposed €3.0 billion senior unsecured debt and 'BBB' rating to its proposed €1.1 billion senior revolving credit facility. The stable outlook on Intrum Justitia reflects our expectation that integration risks will be well-managed and that the group will work to reduce leverage, which increased as a result of the transaction. STOCKHOLM (S&P Global Ratings) June 12, 2017--S&P Global Ratings today lowered its

...+ We expect that Intrum Justitia AB will complete the acquisition of Lock Lower Holdings by the end of June 2017, and we continue to believe that the merger will weaken Intrum's financial profile. + We are downgrading Intrum to '##+/B' from '###-/A-3', and removing the ratings from CreditWatch with negative implications. + We are assigning a '##+' rating to Intrum's proposed 3.0 billion senior unsecured debt and '###' rating to its proposed 1.1 billion senior revolving credit facility. + The stable outlook on Intrum Justitia reflects our expectation that integration risks will be well-managed and that the group will work to reduce leverage, which increased as a result of the transaction. STOCKHOLM (S&P Global Ratings) June 12, 2017--S&P Global Ratings today lowered its long- and short-term counterparty credit ratings on Sweden-based credit management services provider Intrum Justitia AB (publ) to '##+/B' from '###-/A-3'. The outlook is stable. We removed the ratings from CreditWatch, where...

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