S&P rates GCP BB-, loans BB+, notes B+

Standard & Poor's said it assigned its BB- corporate credit rating to GCP Applied Technologies Inc., a spinoff from W.R. Grace. The outlook is stable.

S&P also assigned its BB+ issue–level rating and 1 recovery rating to GCP's proposed $275 million secured term loan and $250 million revolving credit facility. The 1 recovery rating indicates the agency’s expectation of very high (90%-100%) recovery in the event of payment default.

At the same time, S&P assigned its B+ issue-level rating and 5 recovery rating to GCP's proposed $525 million senior unsecured notes. The 5 recovery rating indicates the agency’s expectation of modest (10%-30%; lower half of the range) recovery in the event of payment default.

“The ratings on GCP reflect our assessment of the company's business risk profile of GCP's strengths, including its competitive advantages and a leading market position in its key product offerings into construction products, building materials and packaging markets,” S&P credit analyst Allison Schroeder said in a news release.

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