S&P ups Titan Specialties

Standard & Poor's said it raised the corporate credit rating on Titan Specialties Ltd. to B- from CCC+, along with the rating on the company's first-lien senior secured credit facilities to B from B-, one notch higher than its corporate credit rating. The recovery rating on this debt remains at 2, indicating 70% to 90% recovery in a default.

The agency also said it raised the rating on the company's second-lien senior secured term loan to CCC from CCC-, two notches lower than the corporate credit rating. The recovery rating remains at 6, indicating 0% to 10% expected recovery in a default.

The outlook is stable.

The upgrade reflects the increase in North American drilling activity and improved liquidity and credit metrics from private equity contributions, S&P said.

The ratings take into account an increase in drilling activity by exploration and production companies, the company's highly leveraged financial profile, eased concerns of covenant violations, improved liquidity, high inventory risk levels and its narrow business position in the cyclical North American oilfield services market, the agency said.

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