S&P puts SCIH Salt on positive watch

S&P said it placed its SCIH Salt Holdings Inc. ratings on CreditWatch with developing implications.

The placement follows SCIH’s agreement to buy K+S AG’s Americas operating unit OU Americas, including Morton Salt, for $3.2 billion.

“The acquisition would more than double SCIH Salt’s size, expand its geographical reach within North America, and add a presence in South America,” the agency said in a press release.

“Depending on the final details, adjusted leverage for the pro forma company could exceed our 7x downside trigger for the B rating,” S&P said.

The CreditWatch placement reflects at least a 50% chance S&P could lower, affirm, or raise its rating on SCIH Salt. The agency said it plans to resolve the CreditWatch over the next 90 days as additional details about the acquisition become available.

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