Moody's rates Kerling notes B3

Moody's Investors Service said it assigned a provisional B3 corporate family rating to Kerling plc and a provisional B3 (LGD4, 53%) rating to its proposed €785 million senior secured guaranteed notes.

The outlook is stable.

Kerling is to be formed through a combination of three businesses: the Norwegian polymer business acquired by Ineos Capital from Norsk Hydro ASA in 2008, a chlor-vinyls business to be contributed by Ineos Group Holdings plc plus Ineos Enterprises, which will be contributed by Ineos Capital.

The proceeds from the new financing are expected to be used to refinance all legacy maturing obligations of the combined group, which will include Ineos Vinyls Finance plc's notes due 2011.

The agency said the provisional B3 corporate family rating recognizes the size, integrated nature and cost leadership of the combined company in the European PVC market, which should underpin Kerling's credit profile during the current downturn.

The rating also reflects the expectation of limited growth in the European market along, modest profitability improvements from the current levels, limited debt repayments in the near term and relatively high initial leverage, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.