Fitch revises Kennametal view to negative

Fitch Ratings said it changed the outlook to negative from stable and affirmed Kennametal Inc.'s long-term issuer default rating, bank credit facility and senior unsecured notes at BBB.

“The affirmation and negative outlook take into account Fitch's expectation for a sharp contraction in operating performance leading to limited or negative FCF and higher financial leverage in fiscal 2020 and fiscal 2021 as a result of the economic downturn related to the coronavirus pandemic. The negative outlook captures the potential for a sharper downturn over the next year or a slower than expected recovery in KMT's credit profile beyond fiscal 2021,” Fitch said in a press release.

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