Fitch rates Harsco loan BB+/RR1

Fitch Ratings said it assigned a rating of BB+/RR1 to Harsco Corp.’s $546 million extended, secured term loan B maturing in November 2024.

The agency currently rates Harsco's long-term issuer default rating BB and its secured revolver BB+/RR1.

The outlook is stable. The company had $624 million of debt outstanding as of Sept. 30

Fitch said Harsco's business has begun to recover in 2017 following significant weakness in 2015-2016 as a result of improved conditions in the company's metals and minerals (M&M) and industrial end markets.

“The M&M segment (67% of 2016 revenues) reported 4% revenue growth and higher margins in the first nine months of 2017 due to higher steel output and service levels. The industrial segment (17% of sales) also generated healthy sales and earnings growth in the period due to a rebound in demand for heat exchangers sold into the U.S. energy market,” the agency explained in a news release.

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