S&P gives B+ to Rain Carbon notes

S&P said it assigned its B+ long-term corporate credit rating to Rain Carbon Inc. (RCI). The outlook is stable.

S&P also raised its corporate credit rating on Rain CII Carbon LLC (RCCL) to B+ from B. At the same time S&P raised the issue rating on Rain CII Carbon’s existing notes to B+.

At the same time, S&P said it assigned a B+ rating to the U.S. dollar-denominated senior unsecured notes maturing 2025 that RCI plans to issue. The recovery rating on the proposed notes is 4, reflecting an expectation for average (30%-50%) recovery in the event of a payment default.

RCI's U.S. subsidiaries will guarantee the proposed notes.

“Our rating on RCI reflects the company's exposure to cyclical end markets, its limited product differentiation, exposure to raw material and end-product price volatility, and aggressive financial policies,” S&P said in a news release. “These risks are partially offset by RCI's leading position in the calcined petroleum coke (CPC) and coal tar pitch (CTP), broad geographic footprint, and track record of good relations with suppliers. Moreover, an ongoing cyclical recovery in the company's profitability supports improved financial metrics.”

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