S&P: Kraton Polymers remains on watch

Standard & Poor's said its ratings on synthetic elastomers producer Kraton Polymers LLC remain on CreditWatch with developing implications, including the company's BB- senior secured bank loan rating.

The CreditWatch update follows the announcement that Texas Pacific Group will buy Kraton from Ripplewood Holdings in a transaction that values that company at about $770 million.

While the financial profile of the company following the sale was not disclosed, the CreditWatch listing with developing implications indicates that Kraton's ratings may be raised, lowered, or affirmed. However, any significant increase in leverage, given the recent operating challenges due to higher raw material costs, could result in a downgrade, the agency said.

Kraton, with about $660 million in annual sales, is the leading global producer of styrenic block copolymers. SBCs offer flexibility, resilience, strength, and durability to a wide range of products in a number of end markets, including compounding and polymer systems, adhesives and sealants, asphalt modification, and footwear.

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