S&P: Vertellus view negative

Standard & Poor's said it revised the outlook on Vertellus Specialties Inc. to negative from stable and affirmed its B corporate credit rating.

The agency affirmed the BB- rating on its $85 million ABL revolving credit facility due April 2015. The recovery rating is unchanged at 1, which indicates expectation for 90% to 100% recovery.

S&P also affirmed the B rating on the company's $345 million senior secured notes due October 2015. The recovery rating is unchanged at 4, which indicates expectation for 30% to 50% recovery.

"The negative outlook reflects continuing weak operating trends at Vertellus resulting from elevated raw material costs across both of its segments," S&P analyst Henry Fukuchi said in a statement.

"We believe weak end-market demand for its agriculture and nutrition products could result in further deterioration of the financial profile in the coming months."

The ratings on Vertellus reflect its weak business risk profile, which features a narrow scope of products, and its highly leveraged financial profile, the agency said.

Offsetting factors include the company's leading market share in the pyridine and picolines markets, good technology position within its niche chemical markets and good geographical diversity, the agency noted.

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