S&P lifts, withdraws Wise Metals

S&P said it raised its long-term corporate credit rating on Wise Metals Intermediate Holdings LLC and its subsidiaries Wise Metals Group LLC and Wise Alloys Finance Corp. to B- from CCC+, in line with the rating on parent company Constellium NV.

The outlook is negative. This resolves the CreditWatch placement with positive implications on the Wise Metals Group ratings.

Subsequently, the agency withdrew all ratings on Wise Metals and its subsidiaries at the issuer's request.

At the same time, S&P withdrew its CCC+ issue rating and recovery rating of 4 on the $650 million senior secured notes co-issued by Wise Metals Group and Wise Alloys at the issuer's request. These notes were fully repaid.

S&P said the action reflects that Wise Metals' $650 million senior secured notes were repaid in full by parent Constellium NV on March 3. This follows Constellium's earlier repayment of Wise Metals' payment-in-kind (PIK) toggle notes in the fourth quarter of 2016.

There are no more rated debts at Wise Metals and the agency now believes Constellium has fully clarified its financial and operational strategy with regard to Wise Metals, supported by Wise Metals' improved operating performance in 2016.

“We now view the subsidiary as integral to the group's identity and strategy. Hence we have revised Wise Metals' status within the Constellium group to core, from moderately strategic, and have aligned the ratings with Constellium prior to the withdrawal,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.