S&P lifts Avantor debt to BB

S&P said it affirmed its B+ corporate credit rating on Avantor Performance Materials Holdings SA.

The outlook is stable

At the same time, the agency raised the issue-level rating on Avantor's senior secured debt to BB from BB- and revised the recovery rating to 1 from 2. The 1 recovery rating indicates an expectation of very high (90% to 100%) recovery in the event of a payment default.

"The revised recovery rating and higher issue-level rating on Avantor Performance Materials Holdings S.A.'s senior secured debt reflects the repayment of approximately $80 million of principal made by Avantor on its senior secured term loan in 2015, as well as the higher emergence EBITDA in our recovery analysis,” S&P credit analyst Brian Garcia said in a news release.

"This is primarily the result of the company's increased profitability following successfully implemented operating efficiency initiatives."

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