S&P rates AI Chem loans B+, B-

Standard & Poor's said it assigned a preliminary B+ long-term corporate credit rating to AI Chem Intermediate Sarl, along with a preliminary B+ rating to its proposed $120 million revolving credit facility and $565 million first-lien term loan with a recovery rating of 3.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a preliminary B- rating to its proposed $200 million second-lien term loan with a recovery rating of 6, indicating 0% to 10% expected default recovery.

The outlook is stable.

The ratings reflect AI Chem's weak business risk profile and aggressive financial risk profile, the agency said.

The company is exposed to raw material prices volatility, primarily derived from propylene, S&P said, and the fragmented nature of the coating resin market, which makes the market competitive.

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