S&P puts KMG Chemicals on developing watch

S&P said it placed its B+ issuer credit rating on KMG Chemicals Inc. on CreditWatch with developing implications, indicating that S&P could raise, lower, or affirm the rating upon further information.

At the same time, the agency placed its BB issue-level rating on KMG's senior secured credit facility on CreditWatch with developing implications. There are no changes to the recovery ratings of 1 on the company's senior secured credit facility. The 1 recovery rating indicates an expectation of a very high (90%-100%; rounded estimate: 95%) recovery in the event of a default.

“The CreditWatch placement follows the announcement that unrated Cabot Microelectronics Corp. plans to acquire KMG, a provider of high purity process chemicals (HPPC) for the semiconductor manufacturing industry, pentachlorophenol (penta) wood treatment chemicals, and a provider of performance materials to the energy sector,” S&P said in a news release.

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