S&P lifts L.V.I. Holding

Standard & Poor's said it raised to BB from BB- its long-term corporate credit rating on L.V.I. Holding NV, the holding company of Carmeuse Group.

The outlook is stable.

At the same time, S&P said it raised to BB from BB- its rating on the €175 million senior secured notes issued by Carmeuse Lime BV and guaranteed by L.V.I. and maintained its recovery rating of 2.

S&P noted that the upgrade reflects Carmeuse's: improved cash flow ratios, re-emphasized financial policy favoring the sustainability of those cash flow metrics and continuing good EBITDA margin performance across units despite high energy and transportation costs, notably thanks to contractual pass-on clauses.

The rating also factors in some sensitivity to lower demand for steel, the main end-market, with 40% of sales, and gives room for potential debt-funded and material acquisitions and growth, S&P added.

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