The rating on U.K.-based lead recycler Eco-Bat Technologies Ltd. (Eco-Bat) reflects Standard & Poor's Rating Services' view of the company's weak business risk profile and aggressive financial profile. Eco-Bat's key financial risks include its high leverage, including a -600 million payment-in-kind (PIK) loan issued by the parent company, EB Holdings Inc. (not rated), and the loan's uncertain refinancing prospects. The company's business risks comprise its concentrated business activity, with near-complete dependency on lead production; exposure to movements in London Metals Exchange (LME) lead prices; and dependence on a few large customers. These weaknesses are partially mitigated by our opinion of the company's "adequate" liquidity; current low net financial debt at the Eco-Bat operating company level; leading market positions in Western...
Companies mentioned in this report are: Eco-Bat Technologies Ltd.,Eco-Bat Finance PLC,EB Holdings Inc.
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