S&P assigns BB+ to SPCM notes

S&P said it affirmed its BB+ long-term corporate credit rating on SPCM SA.

The outlook is stable.

The agency also affirmed the BB+ issue rating on SPCM's $250 million senior unsecured notes due 2022 and €550 million senior unsecured notes due 2023.

At the same time, S&P assigned a BB+ issue rating and 3 recovery rating to the group's proposed $450 million senior unsecured notes due 2025. The recovery rating on both the existing and proposed senior unsecured notes is 3, indicating an expectations of meaningful recovery prospects (50%-70%; rounded estimate: 55%).

SPCM will use the proceeds from the proposed issuance to repay the outstanding amount under the 2022 notes. Once it repays the 2022 notes, the agency will withdraw the issue and recovery ratings on the notes.

S&P said the affirmation reflects its view that SPCM will continue its strong operating performance and cash flow generation, following increased stability in raw material pricing, stronger sales in the U.S. and China oil and gas markets and single-digit growth in its end-markets.

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