Moody’s assigns Trinseo loan Ba3, notes B3

Moody's Investors Service said it affirmed the B2 corporate family rating of Trinseo SA and assigned Ba3 ratings to the guaranteed senior secured first-lien term loan and revolver and a B3 rating to guaranteed senior unsecured note to be issued by Trinseo Materials Operating SCA (TMO) and Trinseo Materials Finance, Inc. (TMF).

Both TMO and TMF are wholly owned subsidiaries of Trinseo.

The outlook is stable.

Proceeds will be used to repay TMO's existing high cost senior secured notes due 2019.

"Trinseo's debt refinancing is a credit positive as interest costs should decline significantly, which will allow the company to generate more free cash flow," Moody’s senior vice president John Rogers said in a news release.

"The drop in oil prices, in the fourth quarter of 2014, weakened Trinseo's credit metrics due to a large write down of inventory. This will likely be offset by a much stronger first quarter as prices for many of its commodity petrochemicals and plastics have increased."

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