S&P raises Kraton Polymers

Standard & Poor's said it raised its corporate credit rating on Kraton Polymers LLC by two notches to B+ from B-.

"The rating action reflects Kraton's improved financial profile following $100 million of debt reduction from initial public offering proceeds and its expectation of positive operating trends in 2010 and beyond," said S&P credit analyst Henry Fukuchi.

"We expect these trends to be supported by a rebound in sales volumes, improving economic conditions, ongoing efforts to maintain favorable pricing, and the benefits of past and future cost reductions."

At the same time, the agency said it raised the issue-level rating on Kraton's term loan to BB from B and revised the recovery rating to 1 from 2.

S&P said it also raised the issue-level rating on Kraton's senior subordinated notes to B- from CCC. The recovery rating is unchanged at 6.

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