S&P rates Indigold

Standard & Poor's said it assigned a BB- corporate credit rating to Indigold Carbon BV and a BB- issue-level ratings to Indigold Carbon USA's $575 million senior secured credit facilities. The recovery rating is 3, indicating the expectation of meaningful recovery (50%-70%) in the event of a payment default.

The outlook is stable.

S&P removed all ratings on Columbian Chemicals Acquisition LLC from CreditWatch with negative implications, where they were placed on Jan. 31 following the announcement that Aditya Birla Group had entered into a definitive agreement to acquire the company.

The CreditWatch placement reflected the risk that additional debt associated with the acquisition could weaken financial metrics without measurable offsetting benefits to the business or financial risk profiles, the agency said.

Indigold proposes to use the proceeds, along with equity from Aditya Birla Group, to refinance existing debt and fund the acquisition of Columbian Chemicals from One Equity Partners LLC, an affiliate of JPMorgan Chase & Co.

The ratings on Indigold Carbon reflect the company's aggressive financial risk profile as well as its fair business risk profile, the agency added.

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