S&P rates Dynacast loans BB-

Standard & Poor's said it assigned a B corporate credit rating to Dynacast International LLC and a BB- rating to the company's $100 million credit facility which consists of a $50 million term loan and $50 million revolver. The recovery rating is 1, indicating expectation of 90% to 100% recovery.

The $350 million senior secured second-lien notes are rated B with a 4 recovery rating indicating expectation of 30% of 50% recovery.

The outlook is stable.

Ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, the agency said.

Good geographic diversity and the ability to pass on raw material costs somewhat offset these risks, the agency noted.

Pro forma for the transaction, the ratio of total debt to EBITDA is about 5.9x.

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