S&P upgrades Huntsman

S&P said it raised the corporate credit rating on Huntsman Corp. and its subsidiary Huntsman International LLC to BB+ from BB.

The outlook is positive.

The agency also said it raised the ratings on Huntsman International's junior debt to BB+ from BB.

The recovery rating on the junior debt remains at 3, indicating 50% to 70% expected default recovery.

The recovery and issue-level ratings on the senior secured debt remains at 1 and BBB-, respectively.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The agency also said it raised the corporate credit rating on Huntsman to reflect an expectation that its credit metrics will strengthen in 2018 and 2019 following its significant debt reduction in 2017.

S&P said it makes key assumptions in the analysis that the company's 2018 and 2019 earnings will be around 2017 pro forma levels, at the very least.

The agency also said it expects Huntsman's net leverage will benefit from large cash balances on its balance sheet.

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