S&P rates Kerneos notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Kerneos Tech Group SAS, a holding company for Kerneos Aluminates SAS.

The outlook is stable.

The agency also said it assigned a B+ rating to the group's €200 million fixed-rate senior secured notes and €150 million floating-rate senior secured notes, both due in 2021.

The recovery rating on these notes is 4, indicating 30% to 50% expected default recovery.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, S&P said.

The group is exposed to the highly cyclical end markets of crude steel production and construction, from which it derives the bulk of its revenues, the agency said.

This exposure is somewhat mitigated by the group's recent vertical integration following the acquisition of red bauxite producer, Elmin, S&P said.

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