S&P revises Kraton view to positive, ups notes to B+

S&P said it revised the outlook for Kraton Corp. to positive from stable.

“The positive outlook follows Kraton's announcement that it has agreed to sell its Cariflex business to Daelim Industrial Co. Ltd. for $530 million. We expect the company will use the vast majority of sale proceeds to reduce its leverage profile,” said S&P in a press release.

The agency also upgraded the rating on Kraton’s unsecured notes to B+ from B and revised the recovery rating to 4 from 5. The 4 recovery rating reflects S&P’s expectation of average (30%-50%; rounded estimate: 30%) recovery prospects in the event of a payment default.

S&P affirmed its B+ issuer credit rating on Kraton and its BB issue-level rating on the company’s term loans. The recovery rating remains 1, reflecting an expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of payment default.

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