S&P gives B+ to OCI Beaumont term loan

Standard & Poor's said it assigned its B- corporate credit rating to OCI Beaumont LLC. The outlook is stable.

At the same time, S&P assigned a B+ issue rating and 1 recovery rating to the company's $235 million first-lien senior secured term loan. The term loan initially consisted of two tranches of $235 million and $125 million at closing, but in a subsequent transaction in October 2013 the company paid down the $125 million tranche using proceeds from an IPO.

The 1 recovery rating indicates S&P's expectation for very high recovery (90% to 100%) in the event of a payment default.

"The rating on OCI reflects the company's 'aggressive' financial risk profile, including its very aggressive financial policy, and its 'vulnerable' business risk profile as a single-site producer of commodity chemicals," said S&P credit analyst Paul Kurias in a news release.

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