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S&P assigns Huntsman loan BB, ups notes
Standard & Poor's said it assigned bank loan and recovery ratings to Huntsman International LLC's proposed $2.29 billion senior secured bank credit facilities, based on preliminary terms and conditions.
The amended and restated credit facilities are rated BB, one notch higher than the corporate credit rating, with a recovery rating of 1, indicating the expectation of full recovery of principal in the event of a payment default, the agency said, adding that Huntsman will use proceeds from the proposed term loan B to refinance borrowings under the existing term loan.
In addition, S&P said it raised the ratings on the existing $294 million of outstanding senior secured notes due 2010 to BB from BB- and revised the recovery rating to 1 from 2, indicating the expectation of full recovery of principal in the event of a payment default.
The agency said it also raised the ratings on Huntsman's existing $198 million 11½% senior unsecured notes to B+ from B to recognize the reduction of secured debt in the capital structure and affirmed the BB- corporate credit ratings on Huntsman Corp. and its subsidiary Huntsman International.
The outlook is positive.
S&P said that the positive outlook reflects its belief that the improved business portfolio, with its increased weighting toward the company's higher growth and more competitive business positions, will make Huntsman more resilient during industry or economic downturns, less capital and energy intensive and will provide more consistent free cash generation to support growth and additional debt reduction.
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