S&P: Eco-Bat outlook stable

Standard & Poor's said it revised the outlook on Eco-Bat Technologies Ltd. to stable from positive and affirmed its long-term corporate credit rating at B+.

The senior unsecured debt rating on the €235 million 10 1/8% bond due 2013 issued by subsidiary Eco-Bat Finance plc and guaranteed by Eco-Bat was affirmed at B+. The recovery rating on the notes is unchanged at 3.

"The outlook revision reflects our expectation of much weaker earnings at Eco-Bat in 2009 owing to the recent sharp reduction in lead prices," S&P analyst Paulina Grabowiec said in a statement.

The rating reflects high leverage following a €600 million PIK loan issued in March 2007 by EB Holdings, high reliance on lead production, volatile cash flow generation and potential environmental liabilities, the agency said.

These weaknesses are mitigated by the group's leading market position as the world's largest producer of lead, significant proportion of sales under contract or tolling arrangements and adequate liquidity, the agency noted.

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