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S&P lowers Platform, rates loans BB-, notes B+
Standard & Poor’s said it lowered the corporate credit rating on Platform Specialty Products Corp. and wholly owned subsidiary MacDermid Inc. to BB- from BB.
S&P also said it lowered the ratings on Platform Specialty’s existing senior secured debt to BB- from BB with the recovery rating affirmed at 3 and lowered the ratings on the company’s senior unsecured notes to B+ from BB- with the recovery ratings affirmed at 5.
The 3 recovery rating indicates 50% to 70% expected default recovery.
The 5 recovery rating indicates 10% to 30% expected default recovery.
The agency also said it assigned a BB- rating and 3 recovery rating to Platform Specialty’s proposed $1.145 billion dollar-denominated term loan B. The 3 recovery rating indicates 50% to 70% expected default recovery.
S&P also said it assigned a BB- rating and 3 recovery rating to Platform Specialty’s proposed €300 million euro-denominated term loan B. The 3 recovery rating indicates 50% to 70% expected default recovery.
The agency also said it assigned a BB- rating and 3 recovery rating to Platform Specialty’s proposed $500 million revolving credit facility.
S&P also said it assigned a B+ rating and 5 recovery rating to the company’s proposed $400 million senior unsecured notes. The 5 recovery rating indicates 10% to 30% expected default recovery.
The outlook is negative.
The downgrades reflect the potential for increasing operational and integration risk, especially given the recent news about the resignation of the company’s CEO, the agency said.
S&P said it expects credit measures to be weak for the previous rating, given the largely debt funded portion of the Alent acquisition.
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