(The following statement was released by the rating agency)
Dec 19 -
-- Private-equity group Advent has recently acquired German nonfood discretionary goods retailer Douglas Holding AG (Douglas) through a mix of debt and equity.
-- After the transaction, the group will have a Standard & Poor's-adjusted debt-to-EBITDA ratio of more than 6x, while the adjusted EBITDA interest cover will be between 2.0x and 2.5x.
-- We are assigning our 'B' rating to Douglas.
-- The outlook is stable as we believe that the company's strong position in its German core market will enable it to maintain stable financial metrics, despite a more difficult trading environment in 2013.
On Dec. 19, 2012, Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to German nonfood discretionary goods retailer Douglas Holding AG. The outlook is stable.
At the same time, we assigned an issue rating of 'B+' to Douglas' EUR830 million senior secured debt facilities, maturing in 2018 and 2019, based on a recovery rating of '2', which indicates our expectation of substantial (70%-90%) recovery in a default scenario.