S&P rates AZ Chem loan B+

Standard & Poor's said it affirmed the B+ corporate credit rating on AZ Chem US Inc.

The outlook is stable.

The agency also said it assigned a B+ corporate credit rating to the company's holding company and indirect parent, Arizona Chemical Holdings Corp.

S&P also assigned B+ ratings to AZ Chem US's $60 million first-lien senior secured revolving credit facility due 2016 and $750 million term loan due 2017 with recovery ratings of 3, indicating 50% to 70% expected recovery in a default.

The ratings reflect the company's concentration in a niche market for specialty pine-based chemicals and very aggressive financial policies, as well as a view that industry conditions will support the current financial profile, the agency said.

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