S&P rates ASP Emerald CCR B

S&P said it assigned its B corporate credit rating to ASP Emerald Holdings LLC.

The outlook is stable.

At the same time, the agency affirmed its B issue-level rating and 3 recovery rating on Emerald Performance Materials LLC's first-lien senior secured credit facility, consisting of a $75 million revolver and first-lien term loans totaling $529 million outstanding. It also affirmed the B- issue-level rating and 5 recovery rating on Emerald Performance's $230 million second-lien term loan.

S&P withdrew the B corporate credit rating on Emerald Performance, which was the parent entity prior to ASP Emerald.

"Although S&P Global Ratings expects Emerald's credit measures to remain highly leveraged, we recognize recent margin improvements in the business, and we expect the sale of the PANIT business to be roughly leverage-neutral after it uses a portion of proceeds to pay down debt," S&P credit analyst Michael McConnell said in a news release.

"We expect the company to sustain EBITDA margins in the high-teens to low-twenties, and sustain pro forma weighted average FFO to debt in the 10% to 12% range, and debt to EBITDA in the 5x to 6x range."

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