S&P changes Solenis view

S&P said it affirmed its B- corporate credit rating on Solenis International LP and revised the outlook to negative from stable.

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

Also, the issue-level rating on the company's second-lien term loan remains CCC+. The recovery rating remains 5, indicating an expectation of modest (10%-30%; rounded estimate: 15%) recovery.

“Our revision of the outlook to negative from stable on Solenis reflects the potential for ratings degradation through increased exposure to, and needed cash flow from, the weak pulp and paper market,” the agency said in a news release.

“This follows, in part, the proposed acquisition of BASF SE's paper and water chemicals business–which we believe runs the risk of increasing leverage.”

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