Standard & Poor’s Ratings Services said today it withdrew its ‘B’ corporate credit rating on India-based calcined petroleum coke producer, Rain Calcining Ltd. (RCL). At the same time, Standard & Poor’s also withdrew its ‘B’ rating on the US$395 million senior secured debt of RCL.

This follows the completion of the corporate reorganization and documentation by the Rain group. The management of Rain CII Carbon (India) Ltd. (formerly called RCL) has confirmed that it has been transferred all of RCL’s assets and liabilities, including the corporate guarantee provided to the creditors of Rain CII Carbon LLC (Rain CII LLC, not rated), under this reorganization.

We have therefore assigned our ‘B’ corporate credit rating to India-based Rain CII India. The outlook is stable. At the same time, we assigned our ‘B’ issue rating to the US$395 million senior secured debt co-borrowed by both Rain CII India and Rain CII LLC, with a recovery rating of ‘3’, indicating that lenders can expect meaningful recovery (50%-70%) in the event of payment default.

Rain CII LLC (formerly called CII Carbon LLC) was acquired in 2007 and is now a wholly owned subsidiary of Rain CII India (see previous reports titled “CII Carbon LLC Ratings Withdrawn On Takeover By Rain Calcining, Repayment of Bank Facility” published Sept. 11, 2007, and “Rain Calcining Ltd., Subsidiary CII Carbon Rated ‘B’; Notes Rated ‘CCC+'” published Oct. 30, 2007, on RatingsDirect). The terms and conditions under the US$395 million senior secured debt facility and the US$235 million senior subordinated notes remain unchanged. The business activities of its ultimate parent, Rain Commodities Ltd., remain ring-fenced from Rain CII India.

We maintain our issue rating on Rain CII LLC’s US$235 million senior subordinated notes at ‘CCC+’, with a recovery rating of ‘6’, indicating the expectations of negligible (0%-10%) recovery in the event of payment default.

The ratings on Rain CII India incorporate a view of the consolidated entity including Rain CII LLC. Overall, based on current available information, the credit risk profile of the new entity remains consistent with the current rating.

Sourced From: CRISIL Limited

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