Polish Rubber And Styrenics Maker Synthos Affirmed At 'BB'; Outlook Stable; Senior Notes Assigned '4' Recovery Rating

Synthos S.A. will report strong EBITDA of about Polish zloty 1 billion in 2017 and 2018, in our view, supported mainly by increased feedstock prices, recovery of supply from its local steam cracker, and realized acquisitions. We think the company's strong cash generation should allow it to fund substantial investments in expanding advanced products capacities in coming years, while maintaining dividend payouts such that adjusted debt to EBITDA will remain around 2.0x. We are affirming our 'BB' ratings on Synthos and on its €400 million senior unsecured notes, and assigning a '4' recovery rating because Poland is now covered under our recovery rating criteria. The stable outlook reflects our view that Synthos will balance its substantial investment spending and dividends

...+ Synthos S.A. will report strong EBITDA of about Polish zloty 1 billion in 2017 and 2018, in our view, supported mainly by increased feedstock prices, recovery of supply from its local steam cracker, and realized acquisitions. + We think the company's strong cash generation should allow it to fund substantial investments in expanding advanced products capacities in coming years, while maintaining dividend payouts such that adjusted debt to EBITDA will remain around 2.0x. + We are affirming our '##' ratings on Synthos and on its 400 million senior unsecured notes, and assigning a '4' recovery rating because Poland is now covered under our recovery rating criteria. + The stable outlook reflects our view that Synthos will balance its substantial investment spending and dividends in 2017-2018 against internal cash generation while maintaining adjusted debt to EBITDA of 2.0x-2.5x, the range we see as commensurate with the rating. PARIS (S&P Global Ratings) Sept. 27, 2017--S&P Global Ratings...

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