S&P gives B+ to Axalta notes

S&P said it assigned its B+ issue-level rating and 6 recovery rating to Axalta Coating Systems Dutch Holding B BV’s proposed $500 million and €350 million senior unsecured notes. The 6 recovery rating indicates an expectation of negligible (0-10% range) recovery in the event of payment default.

The company plans to amend and extend its $400 million revolving credit facility. The issue level and recovery ratings on the revolving credit facility remain BB+ and 2, respectively. The 2 recovery rating indicates an expectation of substantial (70% to 90%, lower half of the range) recovery in the event of payment default.

S&P said the ratings on Axalta, including the BB corporate credit rating, are unchanged. The outlook is stable.

The rating reflects S&P’s assessment of the business risk profile as satisfactory and financial risk profile as aggressive, resulting in an anchor rating of bb, the agency said.

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