S&P upgrades Styrolution

Standard & Poor's said it raised the long-term corporate credit rating on Styrolution to B+ from B.

The agency also said it raised the rating on Styrolution's first-lien term loan due in 2019, which is split between a €525 million and a $662.55 million tranche, to B+ from B. The recovery rating on the term loan is unchanged at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect a view that Styrolution will report strong top-of-the-cycle results in 2015, S&P said, and that it will be able to sustain strong profitability in 2016 to 2017.

In the first half of 2015, Styrolution benefited from a combination of favorable industry conditions, including strong styrene prices, caused by a turnaround in styrene capacities in Europe and Asia, the agency said.

The company also benefited from low benzene prices due to the fall in oil prices, S&P said.

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