S&P trims Oxbow Carbon loan to B+

Standard & Poor’s said it affirmed its BB- corporate credit rating on Oxbow Carbon LLC. The outlook is stable.

At the same time, S&P lowered its issue-level rating on company’s senior secured second-lien term loan to B+ from BB- and revised the recovery rating on the term loan to 5 from 4. The 5 recovery rating reflects an expectation of modest (10% to 30%; lower half of the range) recovery in the event of a default.

S&P also revised the liquidity assessment to strong from adequate.

S&P said it revised the recovery rating on the second-lien term loan due to lower valuation assumptions, which resulted in a lower rating.

“The stable outlook reflects our expectation that Oxbow will maintain metrics consistent with an aggressive financial risk profile, with debt to EBITDA between 4x and 5x in 2015 and 2016,” said S&P credit analyst Vania Dimova in a news release. “We also expect the company to maintain relatively steady operating and financial performance and use its available cash flow to pay down debt.”

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