S&P rates Rentech notes B

Standard & Poor's said it assigned a B corporate credit rating to Rentech Nitrogen Partners LP, along with a B rating and 3 recovery rating to its proposed $320 million second-lien senior secured notes.

The proceeds will be used to refinance existing debt, but also to fund nearly $100 million in future capital spending and to meet transaction expenses.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect the company's aggressive financial profile, including aggressive financial policy, weak business risk profile with a narrow focus on commodity fertilizer products and meaningful earnings concentration in a single location, S&P said.

The stable outlook reflects an expectation that operating performance will remain strong in 2013 even if 2013 EBITDA does not match record-setting levels achieved in 2012, the agency said.

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