S&P: Orion, notes B, loans BB-

Standard & Poor's said it assigned a final B long-term corporate credit rating to Orion Engineered Carbons Bondco GmbH, along with a final B issue and 4 recovery rating to the €355 million and $350 million senior secured notes issued in June 2011 and a final BB- issue and 1 recovery rating to its supersenior $250 million revolving credit facility.

The outlook is stable.

Orion is an intermediate holding company that acquired the carbon black activities of Evonik Industries, S&P said.

The proceeds of the senior secured notes were released from escrow in July, when approval from authorities was obtained and the new company was established.

Orion's financial risk profile is considered highly leveraged and its business risk profile is considered weak, the agency said.

This mirrors significant debt leverage and highly cyclical profits, as well as the company's limited operating and financial record as a stand-alone entity, S&P said.

Orion is an intermediate holding company, which itself is owned by Orion Engineered Carbons Holdings GmbH, a holding company funded through shareholder loans from the ultimate controlling private equity owners, Rhône Capital and Triton, the agency said.

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