S&P stabilizes Circor outlook

S&P said it revised its outlook for Circor International Inc. to stable from negative and affirmed its B- ratings on the company and its senior secured facilities. The recovery rating remains 3, indicating meaningful (rounded estimate: 50%) recovery in default.

“Healthy demand across Circor's end markets will underpin revenue growth in the mid-single digits in 2023. We expect growth in the industrial segment will primarily come from the general industrial and energy end markets. A continued shift toward automation and reshoring of manufacturing operations will contribute to growth in the general industrial end market,” the agency said in a press release.

However, in June, Circor agreed to be acquired by KKR, with an expected closing date in the second half of 2023. “We do not yet know the capital structure under this proposed transaction which creates uncertainty around leverage remaining below 5x,” S&P said.

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