S&P reviews Armacell

Standard & Poor's said it placed its B corporate credit rating on Armacell International SA on CreditWatch with negative implications.

At the same time, the agency placed its B issue rating on Armacell's first-lien senior secured term loan B due 2020, the first-lien senior secured revolving credit facility, €120 million first-lien term loan C and the $185 million first-lien loan on CreditWatch negative. The recovery rating is unchanged at 3, indicating expectations of meaningful recovery, in the higher half of the 50%-70% range.

S&P also placed its CCC+ issue rating on the company's second-lien $85 million term loan due 2021 on CreditWatch negative. The 6 recovery rating, indicating expectations of negligible recovery, remains unchanged.

S&P said the CreditWatch placement follows the announcement made by investment firms Blackstone and Kirkbi that they will buy Armacell from Charterhouse. The agency thinks that the transaction is likely to increase Armacell's leverage in the coming years.

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