S&P downgrades Diversey

S&P said it lowered the issuer credit rating on Diamond (BC) BV (Diversey) to B- from B, along with the ratings on Diversey's senior secured and unsecured debt to B- from B.

The recovery ratings on secured and unsecured debt remain at 3 and 4, respectively.

Diversey has experienced several quarters of weakening credit measures as the company continues to spend significantly on costs related to its separation from former parent, Sealed Air Corp., the agency said.

Weakened credit measures were also affected by costs of setting the company up on a standalone basis and capital expenditure to ramp up large new customers, S&P said.

The negative outlook reflects continued uncertainty around transformation-related costs, the agency said.

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