S&P assigns B rating to Alu Holdco 2

S&P said it affirmed the B long-term corporate credit rating on Alu Holdco 1 Ltd., the parent company of Corialis group.

The outlook is stable.

The agency also said it assigned a B long-term corporate credit rating to Alu Holdco 2 Ltd., the issuer of the group's first- and second-lien debt.

The outlook is stable.

S&P also said it affirmed the B rating on the group's first-lien senior secured facilities issued by Alu Holdco 2, including a €318 million term loan B, €25 million revolving credit facility and €35 million capital expenditure facility.

The recovery rating on these debt instruments is 3, indicating 50% to 70% expected default recovery.

The agency also said it affirmed the CCC+ rating on the group's €105 million second-lien loan, also issued by Alu Holdco 2. The recovery rating on this loan is 6, indicating 0 to 10% expected default recovery.

Demand in the company’s main markets remains robust, supported by good pricing conditions, S&P said.

Overall sales grew by nearly 13% in the fiscal year 2015 and this growth is expected to continue at more than 10% for fiscal 2016, the agency said.

The group's margins are resilient and continue to gradually rise toward 20%, supported by tight input cost control, S&P added.

Tempering these strengths is the company’s partial exposure to cyclical new-build construction end markets, the agency said.

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