S&P cuts Oxbow view, rates loans BB+, BB-

Standard & Poor's said it revised its outlook on Oxbow Carbon LLC to negative from stable and affirmed its BB corporate credit rating on the company.

S&P rated Oxbow Carbon's proposed first-lien credit facilities, which consist of a $600 million revolving credit facility, $250 million term loan A and $500 million term loan B, BB+ with a recovery rating of 2. In addition, S&P rated the company's proposed second-lien facility, which consists of a $350 million term loan B, BB- with a recovery rating of 5.

The 2 recovery rating on the first-lien facilities reflects an expectation of substantial (70% to 90%) recovery and the 5 recovery rating on the second-lien facility reflects an expectation of modest (10% to 30%) recovery in the event of a payment default under our scenario.

"Our negative rating outlook incorporates our view that global softness in aluminum, steel, and coal markets will result in weaker-than-expected credit measures for privately held Oxbow Carbon in 2013," S&P said in a news release.

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