Moody’s rates Ineos debt Ba2

Moody’s Investors Service said it assigned Ba2 ratings to the new €500 milllion and $202 million senior secured term loan B facilities due 2027 to be entered into by Ineos Styrolution Group GmbH and Ineos Styrolution US Holding LLC and a Ba2 rating to the €500 million senior secured instrument to be issued by Ineos Styrolution Group.

Concurrently, Moody’s affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Ineos Styrolution Holding Ltd. as well as the Ba2 ratings assigned to the outstanding senior secured term loan B facilities due March 2024, borrowed by Ineos Styrolution Group and Ineos Styrolution US Holding. The outlook remains stable.

The instrument ratings were assigned in the context of Styrolution’s proposed transaction to refinance its term loan B and drawings under the securitization facility, as well as fund a €300 million shareholder distribution and future expansion capex. This will enable the group to extend its maturity profile and maintain a liquidity buffer.

However, as a result of Styrolution upstreaming total dividends of €870 million to its owner during 2019-2020, Moody’s said it estimates the group’s pro-forma leverage (as measured by adjusted total debt to EBITDA) would be around 1.8x at year-end 2019.

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