OREANDA-NEWS. S&P Global Ratings today placed its ratings on the nation's largest mattress retailer Mattress Firm Holding Corp. (MFRM) on CreditWatch with positive implications, meaning that we could raise or affirm our ratings following the completion of our review.

"The CreditWatch listing follows MFRM's announcement that it has signed a definitive agreement to be acquired in an all debt transaction by the South African diversified international retailer Steinhoff International Holdings NV (not rated) which is looking to enter the U. S. market," said credit analyst Olya Naumova. "The transaction will create a global multi-brand mattress retail distribution network with geographical diversification through its presence on five continents. The company indicated its financing plans consist of about $1.8 billion in bridge loans and $2 billion of term loans. We expect the transaction to close by the end of September."

We will resolve the CreditWatch listing following our review of the financial impact of the transaction on MFRM, as well as any benefits from the ownership by Steinhoff International Holdings NV. Specifically, we will be focused on the pro-forma capital structure. Our initial assessment assumes that the MFRM debt will be repaid in full as part of the transaction.