S&P cuts OXEA, loans

Standard & Poor's said it lowered its long-term corporate credit rating on oxo intermediates and derivatives producer OXEA Sarl (Luxembourg) to B+ from BB-.

The outlook is negative.

At the same time, the agency lowered its issue ratings on OXEA's senior secured revolving credit facility and first-lien term loans to B+ from BB- and on the second-lien term loan to B- from B.

S&P said the actions reflect OXEA's weak operating performance in 2014, which led to much higher leverage than it previously assumed, and the uncertainty about the timing and intentions of OXEA's parent, Oman Oil Co. (OOC), to reduce OXEA's debt in line with its previously stated financial policy.

Without a material debt reduction, OXEA's S&P-adjusted leverage is likely to remain at about 8 times to 8.5 times in 2015-2016 under the base-case scenario.

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