OREANDA-NEWS. Fitch Ratings says the proposed acquisition of Mizzen Mezzco Limited (MML) (B+/Stable) by European private equity firm Cinven Partners LLP (Cinven) is not expected to result in a near-term change in the ratings on MML and on the GBP200m senior notes (B-/RR6) issued by Mizzen Bondco Limited, a wholly owned subsidiary of MML.

Fitch does not expect the business strategy and the current management of MML's wholly-owned subsidiary, Premium Credit Finance (PCL), to alter significantly as a result of the change in ownership, and expects that the current funding structure will remain unchanged.

MML is highly dependent on dividends being upstreamed from PCL, its main operating entity, to meet its debt servicing obligations. Any deterioration of PCL's credit risk profile would most likely be the result of an increase in leverage, a weakening of its funding profile or a deterioration of asset quality, which would in turn impact the ability of PCL to upstream dividends to MML to meet its obligations. Fitch will continue to monitor any new strategic direction or alteration in risk appetite that may lead to a change in PCL's credit risk profile or in the financial structure backing the senior notes.

Cinven announced on 13 January 2015 that it agreed to acquire MML (through the acquisition of its holding company, Mizzen Topco S.C.A.) for an enterprise value of GBP462m from private equity firm GTCR LLC. MML is the ultimate holding company that wholly owns PCL, a leading provider of third-party insurance premium in the UK and Ireland. The transaction is expected to close in 1Q15.