S&P changes WEPA Hygieneprodukte view

S&P said it revised its outlook to negative from stable and affirmed its BB- long-term issuer credit rating on WEPA Hygieneprodukte GmbH.

At the same time, the agency affirmed the issue rating on WEPA's €450 million senior secured notes maturing in 2024 at BB-. The recovery rating is 4, indicating an expectation of average recovery (rounded estimate: 35%) in the event of default.

“The outlook revision reflects a view that the current volatility of global pulp prices, exacerbated by strong demand from China, has increased the risk of WEPA's results deteriorating beyond our base-case expectations,” S&P said in a news release.

“In first-quarter 2018, pulp prices continued to evolve in an unusual upward dynamic, reaching an all-time high.”

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