S&P puts Element Materials on positive watch

S&P said it placed its B- ratings for Element Materials Technology Ltd. and its subsidiaries Greenrock Midco Ltd. and Greenrock Finance Inc. on CreditWatch with positive implications.

On Tuesday, Element reported funds advised by Singaporean state-owned investment vehicle Temasek are buying a majority stake in the group from financial sponsor Bridgepoint.

“We consider Temasek to be an investment holding company. Such companies typically have longer-term investment horizons and a lower tolerance for leverage than financial sponsor owners. While we do not have any details on the new owner's planned capital structure for the group, nor its medium-term leverage tolerance, we believe it is likely that they will be more conservative than those that prevail currently. If this is the case, we could raise the issuer credit and issue ratings,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch once it has more clarity on Temasek’s plan for the group's capital structure and financial policy.

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