Fitch upgrades Harsco

Fitch Ratings said it upgraded the rating on Harsco Corp.’s amended revolving credit facility, which is now secured, to BBB- with a recovery rating of RR1 from BB+ with a recovery rating of RR4.

Fitch also said it assigned a BBB- with recovery rating of RR1 to the company’s new secured term loan A.

The agency said it maintained Harsco’s long-term issuer default rating at BB+ and senior unsecured notes at BB+ with recovery rating of RR4.

The ratings also are on Rating Watch negative.

Harsco has amended its $500 million unsecured credit facility, resulting in a $600 million secured facility composed of a $350 million revolver and a $250 million term loan A, Fitch said.

The maturity date has been extended to June 2019, the agency added.

The upgrades reflect the expected strong recovery due to the collateral backing the facilities, Fitch said. This collateral includes the capital stock of each direct subsidiary and substantially all of the company’s tangible and intangible assets.

All of the company’s domestic, wholly-owned restricted subsidiaries guarantee the facilities as well, the agency said.

The proceeds from the term loan will be used to repay borrowings on the revolver and there is no incremental debt, Fitch said.

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