S&P assigns NOVA notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating and 3 recovery rating, to NOVA Chemicals Corp.'s proposed $500 million senior unsecured notes due 2025.

The 3 recovery rating indicates an expectation of meaningful (50%-70%) recovery for noteholders in the event of a default.

The company’s long-term corporate credit rating is BB+.

The notes are senior unsecured obligations of NOVA and will rank equally with all existing and future senior unsecured debt and rank junior to all existing and future secured debt.

Proceeds will be used to repay the company's existing $350 million 8 5/8% senior notes due 2019, including related fees and expenses, with the remaining net proceeds being used for general corporate purposes.

"The ratings on NOVA reflect what we view as the company's fair business risk profile and intermediate financial risk profile," S&P credit analyst David Fisher said in a news release.

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