S&P cuts Koppers view to negative, cuts secured debt to BB-

Standard & Poor’s said it revised its outlook on Koppers Inc. to negative from stable and affirmed its B+ corporate credit rating on the company.

S&P also revised the recovery rating on the company’s existing senior secured debt to 2 from 1 and lowered the issue-level rating on the senior secured debt to BB- from BB. The 2 recovery rating indicates an expectation for substantial (70% to 90%) recovery if a payment default occurs.

In addition, S&P withdrew the 3 recovery and B+ issue-level rating on the company’s $400 million senior unsecured notes. The company had originally planned to issue the notes to refinance existing senior secured debt, however, the transaction ended up not going through due to volatile market conditions.

“The outlook revision follows the company’s announcement that it decided to not go through with its plans to issue $400 million senior unsecured notes to partially refinance existing senior secured debt,” said S&P credit analyst Danny Kraus in a news release.

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