S&P: Royal Holdings on positive watch

S&P said it placed Royal Holdings Inc.'s ratings, including its B corporate credit rating, on CreditWatch with positive implications.

The positive watch follows H.B. Fuller Co.'s announcement that it has signed an agreement to acquire ASP Royal Acquisition Corp., parent of Royal Holdings, for $1.575 billion, S&P said.

The agency said it expects the transaction to close in October 2017.

S&P also said it expects to resolve the CreditWatch once there are assurances that the transaction will close as expected.

S&P said it plans to raise the ratings on Royal Holdings to bring them in line with those on H.B. Fuller.

Once the transaction closes, the agency said it will withdraw the ratings on Royal Holdings, assuming its debt is fully repaid.

If the transaction doesn't close, S&P said it likely will affirm the B corporate credit rating.

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