S&P lifts Gemini HDPE loan

S&P said it raised its issue-level rating on Gemini HDPE LLC's term loan B due 2021 to BB from BB-. The outlook on the rating is stable.

The 2 recovery rating on the senior secured debt is unchanged, indicating substantial (70%-90% range; rounded estimate: 75%) recovery in the event of default.

“The upgrade primarily stems from our recent rating action on Ineos. Our rating on Gemini is primarily linked to the lowest credit quality of either Ineos Group Holdings (BB/stable/--) or Sasol Financing (Pty) Ltd., which is a subsidiary of Sasol Ltd. (BBB-/stable/A-3) because each of these entities guarantees on a several, but not joint basis, 50% of Gemini's debt service and all other obligations,” S&P said in a news release.

“We recently raised our corporate credit rating on Ineos to BB from BB-.”

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