S&P downgrades Kerling

Standard & Poor's said it lowered the long-term corporate credit rating on Kerling plc to B- from B, along with its €40 million senior secured revolving credit facility to B+ from BB-.

The recovery rating is unchanged at 1, indicating 90% to 100% expected default recovery.

S&P also said it lowered the ratings on Kerling's €785 million secured loan notes and €75 million senior secured loan notes to B- from B.

The recovery rating is unchanged at 4, indicating 30% to 50% expected default recovery.

The outlook is negative.

The downgrades reflect a view that Kerling will post weak financial results for 2012, leading to leverage that is no longer commensurate with the rating, S&P said.

The downgrades also consider the very weak conditions in the European PVC industry in 2012 and 2013, the agency said, and an uncertainty as to the timing and magnitude of recovery in Kerling's operating performance and leverage metrics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.