Kem One - comment

With the bonds trading at c.30%, a further cash injection is likely to be required at Kem One.  With this background, it is no surprise that rating agencies are playing catch-up. S&P downgraded the bonds yesterday to CCC-, while keeping the outlook negative. S&P reiterated our liquidity concerns, highlighting that despite the 200m new facility raised in April 2025, the Company has only €50m left and is subject to a €25m minimum cash covenant. Management has acknowledged that it does not expect an improvement in chlorovinyl market conditions in 2025.