S&P downgrades Solenis

S&P said it lowered the corporate credit rating on Solenis International LP to B- from B.

The outlook is stable.

At the same time, the agency lowered the issue-level ratings on the company's first-lien term loans and credit facility to B- from B. The recovery rating remains 3, indicating an expectation of meaningful (50% to 70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P also lowered the issue-level ratings on the company's second-lien term loan to CCC+ from B-. The recovery rating remains 5, indicating an expectation of modest (10%-30%; rounded estimate: 15%) recovery in the event of a payment default.

“The downgrade reflects that increased raw material costs and the inability to pass these on in a timely manner contribute to credit metrics weaker than our expectations,” the agency said in a news release.

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