S&P turns Trinseo view to positive

S&P said it revised Trinseo SA’s outlook to positive from stable and affirmed its B issuer rating. The agency also affirmed BB- and 1 (rounded estimate: 95%) recovery ratings on its term loan facility and the B issue and 4 (rounded estimate: 30%) recovery ratings on its senior unsecured notes.

“Trinseo's first-half 2021 operating results exceeded our initial expectations as it continues to increase margins and EBITDA levels stemming from the strong economic rebound in its end markets. Trinseo's recent performance is offsetting the increase in debt it took on to acquire the polymethyl methacrylate (PMMA) business earlier this year. As a result, we anticipate leverage metrics will exceed our previous assumptions. We expect that combined earnings from all its major business segments will grow by double digits in 2021,” S&P said in a press release.

The outlook mirrors a forecast that Trinseo's credit metrics could remain strong by historical standards in 2022 and beyond, the agency said.

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