S&P rates Vantage Specialty loans B-, CCC

S&P said it affirmed the B- corporate credit rating on Vantage Specialty Chemicals Inc.

The outlook is stable.

The agency also said it assigned a B- rating to the company's proposed $540 million first-lien credit facility.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC rating to the company's proposed $170 million second-lien term loan.

The recovery rating is 6, indicating 0 to 10% expected default recovery.

S&P also said it affirmed the B- rating with a 3 recovery rating on the existing first-lien credit facility and the CCC rating with a 6 recovery rating on the second-lien term loan.

The agency also said it will withdraw the ratings on the existing debt once it is fully repaid.

The ratings reflect the modestly improved profitability achieved through cost-reduction and procurement initiatives, as well as the shift to a higher-value product mix, S&P said.

Vantage's profitability has also benefited from the acquisition of higher-margin business Mallet & Co. in 2016, the agency said.

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