S&P rates Unigel notes B+

S&P said it assigned a long-term B+ global scale corporate credit rating and brA- national scale rating to Unigel Participacoes SA.

The agency also said it assigned a B+ rating on Unigel Luxembourg SA's $200 million senior secured notes due in 2024, which are fully and unconditionally guaranteed by Unigel and the subsidiary guarantors – Acrilonitrila do Nordeste SA, Companhia Brasileira de Estireno, Proquigel Química SA and Plastigas de Mexico SA.

The 3 recovery rating on the notes indicates 65% expected default recovery.

The outlook is stable.

The ratings are in line with the preliminary ratings assigned March 5, S&P explained.

Instead of the expected seven-year $400 million senior unsecured debt, the company issued five-year $200 million secured notes, the agency noted.

Other differences from the previous expected scenario are a slightly more expensive all-in cost and inclusion of certain restrictions on dividend payments, S&P said.

Although from a liquidity perspective, this change doesn't affect the final rating, the agency said it believes the company's financial flexibility has weakened somewhat compared to the original expected issuance, given that almost all of the company's assets are pledged to the current debt.

The ratings reflect the company's overall limited scale in the commoditized styrenics and acrylics markets, even though its leading position in Latin America partially offsets its small size, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.