S&P upgrades Ineos, rates loan BB

S&P said it raised its long-term corporate credit ratings on Ineos Group Holdings SA and Ineos Holdings Ltd. to BB- from B+. The outlook is stable.

At the same time, S&P assigned a BB issue-level rating to Ineos' proposed loan B tranches due in 2022 and 2024 (including both euro and US$ equivalent €575 million term loan B due 2024, €1.326 billion term loan B due 2022, and €1.934 billion due 2022). The recovery rating remains at 2, indicating an expectation of recovery in the lower half of the 71%-90% range in the event of a default.

S&P raised the issue rating on the 2023 (€770 million) senior secured notes to BB from BB-. The recovery rating remains 2, indicating an expectation of recovery in the lower half of the 71%-90% range in the event of a default.

S&P also raised the issue-level rating on the group's 2024 senior unsecured notes (€650 million and US$445 million) to B from B-. The recovery rating on this debt remains 6, indicating an expectation of negligible recovery (0%-10%) in a default scenario.

“The upgrade reflects Ineos' robust operating performance and strong cash flow generation in 2016, the significant €1.2 billion reduction in gross debt as part of the proposed transaction, and management's commitment to maintaining a higher rating,” S&P said in a news release.

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