S&P ups Cornerstone Chemical

S&P said it raised the corporate credit rating on Cornerstone Chemical Co. to B from B-. The outlook is stable.

At the same time, S&P assigned a B issue-level rating to Cornerstone's proposed $430 million senior secured notes, maturing in 2024. The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

S&P also raised the issue-level rating on existing secured notes to B from B-. The recovery rating is 3. S&P said it plans to withdraw ratings on the existing secured notes when they are redeemed in full upon close of the transaction.

The ratings on Cornerstone reflect the company's meaningfully improved profitability because of Dyno Nobel's on-site ammonia plant and anti-dumping regulations affecting competing Chinese producers, S&P said in a news release.

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