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TEXT-S&P rts Loxam 'BB-(Prelim)/stable/--, EUR300M bonds 'B(Prelim)'
January 15, 2013 / 8:57 AM / 5 years ago

TEXT-S&P rts Loxam 'BB-(Prelim)/stable/--, EUR300M bonds 'B(Prelim)'

(The following statement was released by the rating agency)

Jan 15 -


-- Privately-owned equipment rental company Loxam is planning to issue a EUR300 million subordinated unsecured seven-year bond to fund the growth of its business, including possibly through external acquisitions for a maximum amount of EUR150 million.

-- We are assigning a ‘BB-’ preliminary long-term corporate credit rating to Loxam, a ‘B’ preliminary issue rating, and a ‘6’ preliminary recovery rating to the proposed bond issue.

-- The preliminary corporate credit rating reflects our assessment of Loxam’s business profile as fair and of its financial profile as significant under our criteria.

-- The stable outlook reflects our view that Loxam should be able to maintain credit ratios commensurate with the company’s current significant financial profile and that financial flexibility, notably in terms of extension of committed lines and asset disposals, will be used to maintain adequate liquidity as per our criteria.

Rating Action

On Jan. 15, 2013, Standard & Poor’s Ratings Services assigned its ‘BB-’ preliminary long-term corporate credit rating to France-based equipment rental firm Loxam SAS. The outlook is stable. At the same time, we assigned a ‘B’ preliminary issue rating and a ‘6’ preliminary recovery rating to Loxam’s proposed EUR300 million seven-year bonds issue.

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