S&P ups Rockwood, rates loan BBB-

Standard & Poor's said it raised Rockwood Specialties Group Inc.'s corporate credit rating to BB from BB- and assigned its proposed first-lien senior secured credit facilities, consisting of a $180 million revolving credit facility and a $850 million term loan, a BBB- issue rating with a 1 recovery rating, indicating the expectation for very high recovery (90%-100%) in the event of a payment default.

The outlook is stable.

Proceeds from the proposed credit facilities, along with cash on the balance sheet, are expected to pay down the existing $180 million revolving credit facility and $1.25 billion in term loans outstanding.

S&P said that it also raised the issue rating on existing subordinated debt to B+. The recovery rating remains 6, indicating negligible recovery (0%-10%) in the event of a payment default.

The ratings reflect improvements to the company's leverage-related credit metrics on a pro forma basis and the expectation that Rockwood's satisfactory business profile, the improved operating environment and a prudent financial policy will sustain credit metrics at levels appropriate for the ratings, S&P said.

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