S&P rates Ferro facilities BB-

S&P said it assigned its BB- issue-level ratings to Ferro Corp.'s proposed $500 million credit facility and $335 million and $235 million first-lien term loans.

Additionally, the agency assigned its BB- issue-level rating to Ferro's proposed $230 million first-lien term loan borrowed by Ferro GmbH.

The 3 recovery rating reflects an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default.

The agency also affirmed the BB- issue-level rating and revised the recovery rating to 3 from 4 on Ferro's existing credit facility and dollar- and euro-denominated term loans. The agency said it will withdraw the ratings on these facilities once they have been fully repaid.

The BB- corporate credit rating and stable outlook are unchanged.

S&P said it expects the company will use proceeds from the proposed debt to refinance its existing debt and will use a relatively small portion for general corporate purposes.

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