S&P rates KoSa loan, notes

Standard & Poor's said it revised its CreditWatch implications to negative from developing for the ratings on polyester producer KoSa BV and assigned its BB senior secured bank loan rating and a recovery rating of 2 to the company's proposed $1.8 billion of bank credit facilities.

S&P also assigned its B+ rating to the company's proposed $1.2 billion of senior unsecured notes due 2012.

The ratings were placed on CreditWatch with developing implications on Aug. 12, 2003, following the announcement that KoSa's parent, Koch Industries Inc. had entered into exclusive negotiations with E.I. DuPont de Nemours & Co. regarding the possible purchase of Invista, formerly DuPont Textiles & Interiors. The CreditWatch was updated on Nov. 18, 2003, following the announcement that Koch had agreed to purchase Invista from DuPont.

S&P said it will resolve the CreditWatch when the acquisition of Invista is completed. At that time, the corporate credit rating of KoSa will be lowered to BB from BB+, the ratings on the existing bank credit facilities will be withdrawn, and the ratings that are being assigned today will be affirmed.

S&P said the overall creditworthiness of KoSa, when combined with Invista, will reflect an aggressive financial profile resulting from high debt leverage at the outset of the proposed acquisition, somewhat offset by the new KoSa's good business profile as the leading global manufacturer and marketer of fibers and intermediates.

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