S&P puts ASP Chromaflo on developing watch

S&P said it placed all its ratings on ASP Chromaflo Holdings LP, including its B- issuer credit rating and debt ratings, on CreditWatch with developing implications.

The CreditWatch placement follows the announcement that Prince International agreed to acquire Ferro for about $2.1 billion in an all-cash transaction, the agency said. In addition, in conjunction with the closing of the transaction, the newly merged business will be combined with ASP Chromaflo.

“If the deal goes ahead as planned, Chromaflo's credit quality might benefit from a combination with Ferro Corp.'s stronger business, but on the other hand, a highly leveraged deal combined with integration risk would be a credit negative,” S&P said in a press release.

The agency said it could raise, lower or affirm Chromaflo’s ratings after it has more information on the debt structure and there is more certainty the deal will close.

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