S&P changes Superior Plus to stable

S&P said it revised its outlook on Superior Plus Corp. (including its wholly owned subsidiary Superior Plus LP) to stable from negative and affirmed its BB long-term corporate credit rating.

The agency also affirmed its BB issue-level rating on Superior's senior unsecured debt and revised its recovery rating on the debt to 3 from 4, indicating an expectation of meaningful recovery (50%-70%; at the lower end of the range), in a default scenario.

S&P said the outlook revision follows Superior's June 30 announcement that the company has terminated its agreement to acquire Canexus Corp.

"Our revised outlook on Superior reflects our view that the termination of its agreement to acquire Canexus eliminates the downside risk to the company's cash flow and leverage metrics, which we expect should remain within the ranges we deem appropriate for the rating," S&P analyst Michelle Dathorne said in a news release.

"Furthermore, we expect the sale of the construction products division to bolster cash flow metrics on a net debt basis, which we believe adequately supports the BB corporate credit rating."

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