S&P assigns B+ to Ferro loans

Standard & Poor’s said it affirmed its B+ corporate credit rating on Ferro Corp. and assigned a B+ issue-level rating to the company's proposed $500 million senior secured credit facilities. The recovery rating is 3, indicating an expectation for meaningful (50% to 70%) recovery in the event of a payment default.

The outlook is stable.

The proposed senior secured credit facilities, which include a $200 million revolver due 2019 and a $300 million term loan B due 2021, will be used to refinance existing debt and pay transaction fees and expenses.

“The ratings on Ferro Corp. reflect our assessment of the company’s business risk profile as ‘weak’ and financial risk profile as ‘aggressive,’” said S&P credit analyst Daniel Krauss in a news release.

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