S&P upgrades Orion, facilities to BB

S&P said it raised the long-term corporate credit rating on Orion Engineered Carbons SA to BB from BB-.

The outlook is stable.

The agency also upgraded the issue ratings on Orion's €665 million senior secured term loan due 2021 and €175 million revolving credit facility due 2021 to BB from BB-. The 3 recovery rating on these instruments indicates an expectation of recovery in the 50%-70% range (60% rounded estimate).

S&P said the action reflects Orion's continued robust operating performance despite volatile oil prices, which supports our assessment of its business risk profile as fair.

It also reflects the company's track record of consistently using its positive free cash flows to repay debts and successful debt repricing in recent periods, the agency noted.

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