S&P affirms General Chemical

Standard & Poor's said it affirmed the B corporate credit rating on General Chemical Holding Co.

The outlook remains stable.

According to S&P, the company expects to reduce its term loan B pricing to Libor plus 350 basis points from Libor plus 500 bps, reduce its Libor floor to 150 bps from 175 bps and make modest revisions to the terms under its mandatory repayments and restricted payments baskets.

Ratings reflect the company's narrow focus and reliance on mature, low-growth niche chemicals markets, very aggressive financial policies and the lack of a track record since becoming private in late 2009, the agency said.

Following completion of the proposed amendment, pro forma debt leverage as of Dec. 31 is expected to remain slightly below 4x.

The company's market position as an established provider in the relatively stable and highly profitable water treatment chemicals segment and the geographic advantages partly mitigate the company's weaknesses, S&P said.

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