S&P lifts Kloeckner

Standard & Poor's said it raised its long-term corporate credit rating on Kloeckner & Co. International GmbH to BB from B+, following the successful completion of the partial IPO by Kloeckner & Co. AG.

At the same time, S&P said it raised to B+ from B- the rating on the €260 million subordinated bonds issued by Kloeckner Investment SCA and guaranteed by Kloeckner.

All ratings were removed from CreditWatch where they were placed on June 6, the agency said.

The outlook is stable.

S&P added that the rating action reflects the successful completion of the partial IPO of about 40% of group equity, noting that a substantial portion of about €100 million proceeds will be used to reduce Kloeckner's net indebtedness and therefore significantly strengthen its financial profile.

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