S&P upgrades OCI Beaumont

Standard & Poor’s said it raised the corporate credit rating on OCI Beaumont LLC to B from B-, along with the rating on its senior secured term loan to B+ from B.

The recovery rating on the term loan is unchanged at 2.

The outlook is stable.

The upgrade reflects a view that the company will continue to successfully operate its single-location plant and generate operating results that support credit measures appropriate for the B rating, S&P said. The company acquired previously mothballed plants and began partial operations in 2012, the agency said.

After resolving start-up issues, it has established a short track record of successful operations, including strong EBITDA generation of $210 million in 2013, S&P said.

However, a brief unscheduled plant outage in mid-2014 highlights the potential risk involved in running this type of plant, the agency added.

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