Polymer Additives Holdings Inc.'s (Valtris) credit metrics are likely to continue improving modestly over the next 12 months. However, we expect debt to EBITDA will remain at unsustainable levels. As such, we raised our issuer credit rating on the company to 'CCC+' from 'CCC'. The outlook is stable. In addition, we are raising our issue-level rating on the company's first-lien debt to 'CCC+', in line with the issuer upgrade. The '4' recovery rating on the debt is unchanged. The stable outlook reflects our expectation for modest improvement in operating performance over the next 12 months and our belief that the company will maintain liquidity sources over uses of at least 1.2x. In addition, the company fully drew on the revolving
