S&P affirms Almatis Holding

Standard & Poor's said it affirmed Almatis Holding BV's B+ long-term corporate credit rating and B- senior unsecured bonds after the cancellation of its leveraged buyout by the Investcorp group.

The corporate credit rating was removed from CreditWatch, where it was placed with negative implications on Sept. 9 following the announcement of the proposed LBO.

The outlook is stable.

The rating reflects Almatis' relatively small size and aggressive financial profile, the agency said. This is somewhat offset by the group's strong market share in the niche specialty alumina market and its good profitability and cash flow generation before significant growth-related capital expenditures.

Investcorp was planning to acquire Almatis from its two owners, Rhône Capital and the Ontario Teachers' Pension Plan, but the three were unable to reach an agreement, the agency said. Almatis had already been spun off from Alco in the beginning of 2004 in an leveraged buyout.

This new transaction, had it been completed, would have substantially increased Almatis' leverage and weakened its funds from operations and free operating cash flow credit protection ratios, the agency said.

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