S&P puts Kraton on positive watch

Standard & Poor's said it placed all its ratings, including the B- corporate credit ratings, on Kraton Polymers LLC and Polymer Holdings LLC on CreditWatch with positive implications.

The CreditWatch listing follows the announcement that the company will issue up to $230 million in common stock and use the proceeds to repay a portion of the senior secured credit facility as well as for general corporate purposes.

The company is required to apply a minimum of 50% of the net IPO proceeds toward debt reduction on its term loan, and the agency expects the company's total adjusted debt to decrease by approximately $115 million.

The current ratings on Kraton Polymers reflect the company's weak business risk profile derived from its narrow focus on the styrenic block copolymers market and a highly leveraged financial profile, S&P noted.

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