S&P upgrades Albea Beauty

Standard & Poor's said it raised to B+ from B the long-term corporate credit rating on Albea Beauty Holdings SA.

The outlook is stable.

The agency also said it raised to B+ from B the rating on Albea's €200 million senior secured notes and $385 million senior secured notes, both due in 2019. The recovery rating on these notes remains unchanged at 4, indicating 30% to 50% expected default recovery.

The agency also said it withdrew the B long-term corporate credit rating on Albea Beauty Partners SA, the group's top holding company. The agency also withdrew the CCC+ issue rating on the previously proposed $150 million payment-in-kind toggle notes due 2018.

The upgrades reflect the revision of Albea's financial risk profile to aggressive from highly leveraged, S&P said.

This follows management's decision to postpone its previously proposed issuance of $150 million of payment-in-kind toggle notes to fund a one-off dividend payment, the agency said.

Given the operating challenges related to the integration of Rexam plc's personal care division, adjusted total debt-to-EBITDA is likely to slide beyond the 5x level, S&P said.

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