S&P rates Alcoa Nederland notes BB+

S&P said it gave its BB+ issue-level rating and 3 recovery rating to Alcoa Nederland Holding BV's proposed $500 million of senior unsecured notes. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in default.

Alcoa Nederland Holding is a subsidiary of Alcoa Corp., which will guarantee the notes.

The rating is in line with Alcoa Nederland’s other senior unsecured notes.

Proceeds with cash on hand, will be used to redeem its $750 million of debt maturing in 2024 and contribute $500 million to its pension plans.

The outlook is stable.

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