S&P lowers Olin

Standard & Poor's said it lowered its corporate credit rating on Olin Corp. to BB- from BB+.

The outlook is stable.

In addition, the agency said it lowered its issue-level rating on the company's existing senior notes to B from BB+, two notches lower than the corporate credit rating on the company, while it revised the recovery rating on this debt to 6 from 4.

The agency added that it also assigned a B issue-level rating to the company's proposed $150 million senior unsecured note issuance to address the likelihood of reduced recovery prospects among senior unsecured noteholders as additional debt is incurred, and also to allow for the potential that Olin's unsecured revolving credit facility may have to be amended because of prospective financial covenant concerns. It also assigned a 6 recovery rating.

At the same time, the agency said it lowered its preliminary senior secured debt (to BB- from BB+) along with its senior unsecured and subordinated debt (to B from BB-) ratings on Olin's shelf registration filed Dec. 12.

"The two-notch downgrade on Olin reflects an acute decline in the company's core chlor-alkali end markets, along with its view that operating results and credit measures are likely to undergo meaningful compression during the next year," said S&P credit analyst James Siahaan.

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