S&P rates Icahn Enterprises notes BB+

S&P said it assigned a BB+ rating and 3 recovery rating to Icahn Enterprises LP's proposed seven-year senior unsecured notes.

The 3 recovery rating indicates 65% expected default recovery.

The proceeds will be used for general partnership purposes, including the possible repayment of existing senior notes or to fund potential acquisitions, S&P said.

The agency said it views this offering favorably because it will provide the company with additional liquidity to address its upcoming $1.7 billion maturity due in August 2020, but callable at par in August 2019, and will lengthen the company's maturity schedule.

Given the expected smaller size of this offering, S&P said it thinks it is possible that the company modestly reduces its debt outstanding over the next year.

Alongside the announcement of its first-quarter earnings, Icahn announced that it would also seek to raise up to $400 million in equity through an "at the market" offering, the agency said.

The company's ability to successfully execute this depends on supportive market conditions, S&P said.

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