S&P changes Kraton Polymers back to B-

Standard & Poor's said it raised the corporate credit ratings of Kraton Polymers LLC and Polymer Holdings LLC to B- from SD (selective default) and raised the $200 million 8 1/8% senior subordinated notes due 2014 to CCC with a recovery rating of 6 from D.

The issue rating on the company's first-lien loan remains unchanged at B with a recovery rating of 2, and S&P removed the rating from CreditWatch, where it was placed with negative implications on April 3.

The outlook is stable.

The ratings were originally lowered to SD and D after Kraton purchased and retired $30 million of the 8 1/8% notes for about $11 million, including accrued interest, which the agency viewed as a distressed exchange.

The restoration of the B- corporate credit rating reflect S&P's reassessment of the company's credit quality and the senior subordinated notes' recovery prospects. The agency said the exchange transaction alleviated near-term covenant concerns and enabled the company to improve its covenant compliance ratios for the first quarter of 2009 and future quarters.

The 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, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.