Polish Rubber And Styrenics Maker Synthos S.A. Assigned 'BB' Rating; Outlook Stable

After a significant COVID-19-related hit to performance in second-quarter 2020, Synthos S.A. swiftly recovered in the second half and into 2021, reflected in S&P Global Ratings-adjusted EBITDA of about Polish zloty (PLN) 830 million for the 12 months to March 31, 2021, more than 25% compared with full-year 2020. The company recently signed an agreement to acquire Trinseo S.A.'s synthetic rubber business for an enterprise value of about $480 million (PLN1.78 billion). On a pro forma basis, we forecast adjusted EBITDA will increase to PLN1.4 billion-PLN1.5 billion including full-year contribution from the acquired assets. We anticipate adjusted debt to EBITDA will improve to about 2.6x by year-end 2021 on a pro forma basis from 3.4x at year-end 2020 pre-acquisition, mainly

...May 25, 2021 - After a significant COVID-19-related hit to performance in second-quarter 2020, Synthos S.A. swiftly recovered in the second half and into 2021, reflected in S&P Global Ratings-adjusted EBITDA of about Polish zloty (PLN) 830 million for the 12 months to March 31, 2021, more than 25% compared with full-year 2020. - The company recently signed an agreement to acquire Trinseo S.A.'s synthetic rubber business for an enterprise value of about $480 million (PLN1.78 billion). On a pro forma basis, we forecast adjusted EBITDA will increase to PLN1.4 billion-PLN1.5 billion including full-year contribution from the acquired assets. - We anticipate adjusted debt to EBITDA will improve to about 2.6x by year-end 2021 on a pro forma basis from 3.4x at year-end 2020 pre-acquisition, mainly spurred by market demand recovery and much higher monomer prices. - We assigned our '##' long-term issuer credit and issue ratings to Synthos S.A. and its proposed 500 million senior secured notes. -...

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