S&P rates Ripplewood loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Ripplewood Phosphorus LLC. The outlook is stable.

At the same time, S&P assigned its B+ bank loan rating and its recovery rating of 4 to the company's proposed $25 million revolving credit facility due 2009 and $140 million amortizing term loan due 2011.

Proceeds will be used to help fund the acquisition of Ripplewood Phosphorus from Akzo Nobel NV (A-/negative/A-2) in a highly leveraged transaction.

S&P said the ratings on Ripplewood Phosphorus reflect a modest sales base, a narrow product line, the cyclicality of end markets, and aggressive debt leverage. These negatives overshadow the company's strong position in the production of organophosphorus flame retardants and expected debt reduction over the intermediate term.

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