U.S.-based lubricants company Valvoline Inc. has completed its initial public offering (IPO), reduced funded debt to $750 million from $1.25 billion, and strengthened credit ratios, including adjusted debt to EBITDA to the low-3x area and adjusted FFO to debt to about 20%, compared to the low 4x and low-teens areas, respectively, prior to the IPO. We are assigning our 'BB' corporate credit rating to Valvoline as a result of the strengthening of its balance sheet. We are also assigning our 'BBB-' rating to Valvoline's $1.325 billion senior secured bank credit facility due 2021 with a '1' recovery rating. In addition, we are assigning our 'BB' rating to Valvoline's $375 million senior unsecured notes due 2024 with a '4' recovery rating.
