S&P rates Kinove, bond B, loan BB-

Standard & Poor's said it assigned a preliminary B long-term corporate credit rating to Kinove German Bondco GmbH.

Kinove is an intermediate holding company that will acquire the carbon black activities of Evonik Industries.

The agency also said it assigned a preliminary B rating and preliminary 4 recovery rating to the proposed €600 million bond, as well as a preliminary BB- issue and preliminary 1 recovery rating to the super senior $250 million revolving credit facility.

The outlook is stable.

The ratings reflect Kinove's aggressive financial risk profile and weak business risk profile. This mirrors significant debt leverage and highly cyclical profits, as well as the company's limited operating and financial record as a stand-alone entity, S&P said.

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