Moody’s ups Olin facilities, trims bonds

Moody’s Investors Service said it affirmed Olin Corp.’s Ba2 corporate family rating and upgraded the company’s credit facilities to Baa3 from Ba2.

The upgrade is based on a credit amendment that provides a first-priority lien to the revolver and delayed-draw term loan, the agency said.

Also, Moody’s downgraded the company’s unsecured notes to Ba3 from Ba2.

Moody’s said it also raised the company’s speculative grade liquidity rating to SGL-2 from SGL-3 based on a greater expected cushion under amended financial maintenance covenants, the ability to use the delayed-draw term loan to fund an upcoming major payment and several other liquidity-enhancing actions.

“Olin’s credit agreement amendment enhances the company’s liquidity position, but providing security to lenders subordinates existing unsecured debtholders, resulting in a downgrade to the unsecured debt ratings,” said Ben Nelson, a Moody’s vice president, senior credit officer and lead analyst for Olin Corp., in a press release.

The outlook remains negative.

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