S&P rates L.V.I. bond BB+

Standard & Poor's said it raised to BB+ from BB its long-term corporate credit rating on L.V.I. Holding NV, reflecting sustainable improvements to operating performance and financial policy. L.V.I. is the holding company of Carmeuse Group.

S&P also assigned a BB+ debt rating to the €200 million proposed senior unsecured bond to issued by Calcipar SA and guaranteed by L.V.I., reflecting a limited amount of priority liabilities versus assets. Proceeds will be used to refinance the existing secured bond, which will be effectively redeemed in mid-July. The rating on the secured bond is unchanged.

The outlook is stable.

The upgrade reflects Carmeuse's track record of good cash flow metrics and reduced leverage, the agency said, along with continuing good EBITDA margin performance across units.

The rating also factors in some sensitivity to lower demand for steel - the main end-market and gives room for material growth capital expenditure and small to midsize acquisitions, S&P said.

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