S&P puts Kaiser Aluminum on watch

S&P said it placed all its ratings on Kaiser Aluminum Corp., including the BB+ issuer rating, on CreditWatch with negative implications.

Kaiser agreed to acquire the Warrick Rolling Mill from Alcoa Corp. and plans to fund the transaction using cash on hand, which includes proceeds from the senior notes it issued in April.

“The acquisition will raise leverage above what is commensurate for the rating and eliminate headroom under credit metrics in 2021,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch once it determines the acquisition's effect on its views of the company's financial risk and financial policy.

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