S&P changes Lycra stand-alone to b+

S&P said it revised its stand-alone credit assessment on Eagle Super Global Holding BV (Lycra Co.) to b+ from bb- and affirmed the B corporate credit rating.

The outlook remains stable.

At the same time, the agency affirmed the B issue-level rating on the proposed dollar- and euro-denominated term loans. The recovery rating was revised to 4 from 3, indicating expectations for average (30%-50%; rounded estimate: 45%) recovery in the event of payment default.

The agency said the rating on Lycra considers a view of the credit quality of the majority owner Shandong Ruyi Technology Group.

“The revision of our stand-alone credit profile for Lycra stems from the company's proposed upsized amount on its term loan of about an additional $190 million,” the agency said in a news release.

“The term loans now total about $1 billion compared to our previous expectation of about $800 million.”

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