S&P upgrades Ashland Global

S&P said it upgraded the issuer credit ratings on Ashland Global Holdings Inc. and subsidiaries Ashland LLC and Hercules LLC to BB+ from BB after the parent company completed the sale of its composites business and butanediol facility to Ineos Enterprises.

“We view this event as favorable to credit quality mainly due to meaningfully reduced debt leverage, but also due to the increased specialty focus of the company, which we expect will lead to improved profitability,” said S&P in a press release.

At the same time, S&P upgraded the issue-level rating on Ashland’s secured revolving credit facility to BBB- from BB+ and revised the recovery ratings on the facility to 1 from 2. The agency also lifted the issue-level ratings on Ashland’s unsecured debt to BB from BB- and the issue-level ratings on subordinated debt at Hercules to BB+ from BB.

The outlook is stable.

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