Fitch assigns Lune, notes B

Fitch Ratings said it assigned Lune Holdings Sarl (Kem One) an expected long-term issuer default rating of B and an expected senior secured rating of B with an RR4 recovery rating to its planned €450 million of seven-year notes.

“The IDR reflects Kem One's concentrated business profile as a regional integrated producer of polyvinyl chloride (PVC), its significant exposure to the construction sector and raw material prices volatility, its vulnerability to production issues and moderate scale. It also captures a reduced supplier dependency and a conservative financial leverage. We expect that funds from operations (FFO) gross leverage will remain below 4x until 2024,” Fitch said in a press release.

Apollo Global Management Inc owns Lune and will use it to acquire K1 Group SAS, which controls Kem One SAS.

The outlook is stable.

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