S&P affirms Armacell

S&P said it affirmed its B long-term corporate credit rating on Avocado Bidco Luxembourg Sarl (Armacell). The outlook is stable.

At the same time, S&P revised down its recovery rating on Armacell's senior secured debt, including its first-lien €100 million revolving credit facility, the existing €482 million first-lien term loan and the proposed €140 million first-lien upsize to 4 from 3 and affirmed the B issue ratings on these instruments.

The recovery rating indicates a revised expectation of recovery prospects of about 35% in the event of a payment default.

S&P also affirmed the CCC+ issue rating on the group's second-lien debt, indicating an expectation of negligible recovery of 0%-10% in the event of a payment default. S&P will withdraw this rating once the second-lien facility is repaid.

“The affirmation reflects our view that the planned transaction will not materially affect Armacell's credit metrics,” S&P said in a news release.

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