S&P lifts Monitchem revolver

S&P said it raised its issue rating on Monitchem Holdco 2 SA’s €100 million super senior revolving credit facility due 2020 to BB- from B+ and revised the recovery rating to 1+ from 1, indicating an expectation of full recovery (100%) in the event of a payment default.

The agency affirmed the B- long-term issuer credit rating on Monitchem and affirmed the B- issue rating on the €410 million senior secured notes due 2021. The recovery rating is unchanged at 3, reflecting meaningful recovery (50%-70%; rounded estimate: 60%).

The agency affirmed the CCC issue rating on the €175 million senior unsecured notes due 2022. The recovery rating is unchanged at 6, indicating negligible recovery (0%-10%; rounded estimate: 0%).

The outlook is negative.

S&P said the upgrade for the revolver reflects an assessment of the security pledged, and the limitation on incremental debt being issued that ranks equal or more senior to the instrument.

“We consider that the super senior RCF has a first-priority pledge over security of sufficient value to allow for full recovery in the event of a hypothetical default,” S&P said in a news release.

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