S&P lifts Specialty Chemicals

S&P said it raised to B+ from B its long-term issuer credit rating on Specialty Chemicals International BV.

The outlook is stable.

At the same time, the agency raised to B+ from B the issue rating on the €363 million term loan borrowed by Specialty Chemicals Holding II BV, Specialty Chemicals International Inc., Reichhold Holdings International BV, Polynt Composites USA Inc. and Reichhold LLC 2.

The recovery rating is 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 65%) in the event of payment default.

S&P said the upgrade reflects the group's strong financial performance since the merger of Polynt with Reichhold in May 2017 and a faster-than-expected deleveraging to 3.5x S&P-adjusted debt to EBITDA at the end of 2017, which the agency anticipates will further improve toward 3.0x in 2018, in line with its expectation for a B+ rating.

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