S&P rates Kew Soda, notes B+

S&P said it assigned B+ ratings to Kew Soda Ltd., the intermediate parent company of West East Soda, and the $800 million in senior secured notes due 2028 issued by WE Soda Investments Holding plc. The outlook is stable.

WE Soda refinanced its capital structure. As part of the transaction, WE Soda issued $800 million of senior secured notes. The notes will be used to pay down WE Soda's senior term loan A and repay the $426 million Kazan Soda project finance facility due 2027 and Eti Soda's $103 million working capital facility, to simplify its capital structure.

“We anticipate that the company will sustain adjusted debt to EBITDA of 2x-3x, which is solid for the bb stand-alone credit profile (SACP), supported by its competitive cost position, leading to very strong margins and resilient sales volumes.

“However, we cap the rating at one notch above the transfer and convertibility (T&C) assessment on Turkiye (B) because despite being an exporter, all the company's physical assets are in Turkiye, which exposes it to domestic risks that are beyond its control,” S&P said in a press release.

The stable outlook reflects the stable outlook on Turkey, the agency said.

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