Fitch changes Kennametal to negative

Fitch Ratings said it affirmed its BBB long-term issuer default rating on Kennametal Inc., and its BBB rating on the company's bank credit facility and senior unsecured notes.

The outlook was revised to negative from stable.

The company had $751 million of debt outstanding as of Sept. 30.

Fitch said Kennametal's business is under considerable pressure from a sharp drop-off in oil and gas markets together with declines in its coal mining and general engineering businesses and softer conditions in emerging markets, especially China.

The negative outlook reflects the expected decline in the company's sales and earnings, which will constrain its free cash flow and credit metrics, and likely persist beyond the current fiscal year ending June 2016 into fiscal 2017, and perhaps beyond, the agency said.

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