Fitch assigns Nobian, B+, loan BB-

Fitch Ratings said it assigned Nobian Holding 2 BV an expected long-term issuer default rating of B+ with a stable outlook. Fitch also gave Nobian Finance BV's planned term loan and other senior secured indebtedness an expected senior secured rating of BB-. The recovery rating is RR3.

“The rating reflects Nobian's high leverage as a result of the spin-off from Nouryon, its regional leadership position in high purity salt, caustic soda, chlorine and chloromethanes in Europe as well as its high profitability, long-term customer relationships and contractually-protected revenues,” Fitch said in a press release.

The outlook reflects an expectation that funds from operations gross leverage will stay within the rating's sensitivity from 2022 as caustic soda prices recover and Nobian starts benefiting from capacity expansion across its different segments, cost rationalization and pricing initiatives, the agency said.

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