S&P: Kraton view now stable

Standard & Poor’s said it revised its outlook on Kraton Performance Polymers Inc. to stable from positive. At the same time, S&P affirmed the B+ corporate credit rating on the company and a B issue-level rating on the company’s unsecured debt. The recovery rating on the unsecured debt remains 5, indicating an expectation of modest (10% to 30%) recovery in the event of a payment default.

“Following the termination of the agreement to combine Kraton’s assets with LCY Chemical Corp.’s sytrenic block copolymers [SBC] assets, which could have led to higher earnings with no additional debt, Kraton’s financial risk profile will not improve to levels that would warrant a higher rating in the near term,” said S&P credit analyst Pranay Sonalkar in a news release.

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