S&P Attempts to Make Large Buyouts More Transparent, FT Reports

By Lenka Ponikelska

July 17 (Bloomberg) -- Private equity groups will soon find more financial information publicly disclosed about the progress of European companies in which they invest because of changes to Standard & Poor's debt ratings, the Financial Times reported.

Starting in December, S&P will provide so-called public ratings for buyouts with debt exceeding 1 billion euros ($1.6 billion), the newspaper said.

The change will contrast with the present system of private so-called credit estimates that are performed for individual- paying investors on an impromptu basis, the FT said.

Formal ratings will serve the market better by supporting long-term growth and stability, said Paul Drake, S&P's head of European Leveraged Finance & Recovery, according to the FT.

To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net