S&P upgrades CPM

S&P said it raised its ratings for CPM Holdings Inc. and its first-lien debt to B from B-. The agency also lifted the second-lien debt to B- from CCC+. The 3 recovery rating on the first lien (rounded estimate: 50%) and 5 recovery rating on the second-lien debt (rounded estimate: 10%) are unchanged.

“CPM is tracking to outperform our prior forecast for fiscal 2022 based on its solid year-to-date results, and we expect continued deleveraging over the next 12 months. We expect strong organic revenue growth in fiscal 2022 and moderate organic growth in 2023 driven primarily by a healthy order backlog and our expectations for continued growth in the company's end markets. We expect particularly strong growth in the next few quarters in the crown and thermal segments,” the agency said in a press release.

The agency said it projects CPM’s S&P Global Ratings-adjusted leverage to improve to the 4x-5x range by end of fiscal 2022 (Sept. 30) and to the 3.5x-4.5x area by fiscal year-end 2023.

The outlook is stable.

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