Sept 10 - Standard & Poor’s Ratings Services today updated its recovery analysis on Middlebury, Conn.-based Chemtura Corp. to reflect the company’s proposed $125 million add-on to the company’s existing senior secured term loan. We have maintained our ‘BB+’ issue rating and ‘1’ recovery rating on the senior secured term debt, indicating our expectation of a very high (90% to 100%) recovery in the event of payment default.
Chemtura will use proceeds of the incremental term loan borrowings for general corporate purposes and acquisitions. The existing ratings on Chemtura, including the ‘BB-’ corporate credit rating, are unchanged. The outlook is stable.
The rating reflects our view of Chemtura Corp.’s position as a leading global producer of industrial and specialty chemicals serving various end markets. It also reflects Standard & Poor’s Ratings Services’ assessment of the company’s business risk profile as “fair” and financial risk profile as “aggressive”.