S&P: Albaugh view to positive

S&P said it revised the outlook on Albaugh LLC to positive from stable and affirmed its B+ corporate credit rating.

The agency also said it raised the ratings on Albaugh's senior secured credit facility to BB from BB- and revised the recovery ratings on the facility to 1 from 2.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The outlook revision reflects an expectation of improved credit measures in 2017 and 2018, S&P said.

Credit measures improved in 2016 due to a combination of improved volumes, an improving margin product mix and better-than-expected performance from the acquired Consagro business in Brazil, S&P said.

The company also is benefiting from customers trading down to more affordable off-patent crop protection chemicals as a way to cut costs relative to more expensive patented products, the agency explained.

S&P said it expects high volatility in the company's profitability going forward with EBITDA ratios remaining above levels achieved in 2015.

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