S&P rates Lion Copolymer loans BB, B+

Standard & Poor's said it assigned a B+ corporate credit rating to Lion Copolymer Holdings LLC.

The outlook is stable.

The agency also said it assigned a rating of BB and a recovery rating of 1 to the company's proposed $50 million asset-based loan.

S&P also said it assigned a B+ rating and a recovery rating of 3 to the proposed $300 million term loan.

The B+ rating on the company was derived from the anchor rating of B+ based on the company's weak business risk and aggressive financial risk profiles, the agency said. The modifiers have no effect on the ratings, S&P said.

The ratings reflect the company's third-largest domestic capacity for the niche chemical product EPDM, advantaged feedstock costs and high EBITDA margins, the agency said.

The company's dependence on a single product, concentration of manufacturing in a single location and supplier and customer concentration also affect the ratings, S&P said.

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