S&P affirms Italmatch on tap issue

S&P said it affirmed a B rating on Fire (BC) Sarl.

The agency also said it affirmed the 3 recovery rating and B issue rating on Italmatch SpA's senior secured notes, including its tap issue.

Italmatch, through its holding company Fire, closed the acquisition of BWA Water Additives in February.

Italmatch launched a €200 million tap under its senior secured floating-rate notes due in 2024 for the purpose of refinancing the €198 million bridge facility that was used to fund the transaction, along with an equity contribution from shareholders, S&P explained.

The rating on Fire reflects a view that despite higher gross debt of €645 million following the issuance of €200 million in new senior secured floating-rate notes, the company's leverage will decline to lower than 6x starting from 2020, the agency said.

Adjusted debt-to-EBITDA ratio will be 6.2x in 2019, but higher earnings will enable the company to reduce its adjusted debt-to-EBITDA ratio in the following year, S&P said.

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