S&P rates AZ Chem US loan B+

Standard & Poor's said it affirmed the B corporate credit rating on AZ Chem US and on its newly formed parent, AZ Chem Intermediate Holdings Inc.

The outlook is stable.

The agency also said it removed all of the ratings on AZ Chem US and AZ Chem Intermediate from CreditWatch with positive implications, where they were placed in May following news that the company planned an initial public offering and would use proceeds to pay down debt.

The agency also said it assigned a B+ rating and 2 recovery rating, indicating 70% to 90% recovery in a default, to a proposed $50 million first-lien senior secured revolving credit facility due 2015 and a $470 million term loan due 2016.

The proceeds will be used to refinance existing debt and to partly fund American Securities LLC's acquisition of 75% of AZ Chem's parent holding company.

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