S&P gives Novelis notes BB

S&P said it assigned BB issue-level and 4 recovery ratings to Novelis Inc.'s proposed $1.5 billion of senior unsecured notes issued by wholly owned subsidiary Novelis Corp. The 4 recovery rating indicates an expectation for average (30%-50%, rounded estimate: 30%) recovery in a simulated default analysis, with no notching from the issuer credit rating.

Novelis plans to sell $750 million of notes due 2026 and $750 million of notes due 2031. The notes will be guaranteed, jointly and severally, on a senior unsecured basis, by Novelis Inc. and most of its operating subsidiaries, and rank equally with the company's other senior unsecured debt.

Proceeds are expected to be used to repay the company's $1.5 billion of senior unsecured notes due 2026, which will require a make-whole payment.

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