S&P rates Olin loan BB+

Standard & Poor’s said it affirmed Olin Corp.’s BB+ corporate credit rating and removed it from CreditWatch, where it was placed with negative implications in March.

The outlook is stable.

S&P also said it assigned a BB+ rating and 4 recovery rating to Olin’s proposed senior unsecured credit facilities. The 4 recovery rating indicates 30% to 50% expected default recovery.

The ratings reflect an expectation that the transaction with Dow is likely to close as currently proposed, the agency said.

The ratings also consider that the addition of Dow’s chlorine assets should improve Olin’s scale and diversity, especially with respect to building the company’s downstream chlorine business,, S&P said.

Following the combination, Olin will deliver a significantly greater proportion of its chlorine into more stable and profitable downstream products rather than the volatile merchant market, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.