S&P ups Houghton loans to B+ & B-

Standard & Poor's said it raised its issue rating on Houghton International Inc.'s first-lien term loan facility to B+ from B and revised its recovery rating on this debt to 2 from 3, indicating an expectation of substantial (70% to 90%) recovery in the event of a default.

The agency also raised its issue rating on the company's second-lien term loan facility to B- from CCC+ and revised the recovery rating on this debt to 5 from 6, indicating an expectation of modest (10% to 30%) recovery in the event of a default.

Houghton's B corporate credit rating was affirmed.

The outlook is stable.

"The upgrade of Valley Forge, Pa.-based Houghton International Inc.'s first- and second-lien term loan facilities partially reflects our reassessment of the company's EBITDA multiple to be more in line with other specialty chemical peers," S&P credit analyst Seamus Ryan said in a news release. The company's relatively stable and industry-average margins and its largely variable cost structure support this assessment.

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