S&P upgrades Orion Engineered

Standard & Poor’s said it raised to BB- from B+ the long-term corporate credit rating on Orion Engineered Carbons SA.

The agency also said it raised to BB- from B+ the ratings on the €665 million senior secured term loan due 2021 and the €115 million revolving credit facility due 2019.

The recovery ratings on these instruments are 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect Orion’s improved financial performance and a forecast that it will further reduce its leverage in 2015, S&P said.

The upgrades also capture an expectation of a prudent dividend policy given the anticipated continued stake reduction of Orion’s private equity owners, the agency said.

Orion’s first-quarter 2015 performance also was better than previous expectations, both in rubber blacks and specialty blacks, S&P said.

© 2015 Prospect News.
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