S&P affirms Element on acquisition news

Standard & Poor’s said it affirmed the B long-term corporate credit rating on Element Materials Technology Group Holding CC2 Ltd.

The outlook is stable.

The agency also said it affirmed the B rating on the existing and incremental term loan B drawn by Element Materials Technology Group US Holdings Inc. and Element Materials Technology Group Holding UK Ltd.

The recovery rating on these facilities is 3, indicating 30% to 50% expected default recovery.

The affirmation follows news of Element’s planned acquisition of TRaC for $70 million in cash.

The acquisition will not meaningfully alter the company’s business risk profile, S&P said, and Element’s leverage remains high.

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