December 12, 2012 / 5:35 PM / 5 years ago

TEXT-S&P removes Elster Group 'BB-' rating from watch neg

Overview
     -- Germany-based meter manufacturer Elster Group SE has completed its 
redemption in full of its EUR250 million 6.25% senior notes due 2018.
     -- We are affirming all our ratings on Elster, including our 'BB-' 
corporate credit rating, and removing the ratings from CreditWatch with 
negative implications.
     -- The outlook at the time of withdrawal was stable.
     -- We are subsequently withdrawing our ratings on Elster at the company's 
request.

Rating Action
On Dec. 12, 2012, Standard & Poor's Ratings Services affirmed its 'BB-' 
corporate credit rating on Elster Group SE and removed the ratings from 
CreditWatch, where they were placed with negative implications on June 19, 
2012, following Elster's announcement that it was in talks to be acquired by 
Melrose PLC (not rated). Subsequently, we are withdrawing our corporate credit 
rating on Elster at the issuer's request. The outlook at the time of the 
withdrawal was stable. All of the debt Standard & Poor's rated has been 
redeemed in full. As a result, we have withdrawn all our issue-level and 
recovery ratings on the company's notes. 

Rationale
The affirmation reflects our assessment that credit quality remains stable 
with Elster's new ownership. Melrose acquired Elster on Aug. 28, 2012. Elster 
has redeemed in full its outstanding EUR250 million senior notes due 2018. 


Related Criteria And Research
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008


Ratings List
Ratings Affirmed; Removed from CreditWatch
                                      To                 From
Elster Group SE
 Corporate Credit Rating              BB-/Stable/--      BB-/Watch Neg/--

Elster Finance B.V.
 Senior Unsecured                     BB-                BB-/Watch Neg
  Recovery Rating                     3                  3

Ratings Withdrawn
                                      To                 From
Elster Group SE
 Corporate Credit Rating              NR                 BB-/Stable/--      

Elster Finance B.V.
 Senior Unsecured                     NR                 BB-                
  Recovery Rating                     NR                 3                  
 

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

Our Standards:The Thomson Reuters Trust Principles.
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