Fitch changes Kennametal to stable

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

The outlook was revised to stable from negative.

The company had $697 million of debt outstanding as of Dec. 31

Fitch said the outlook revision reflects Kennametal’s improved credit profile supported by strengthening end-markets and a restructuring program that should continue to yield higher margins over the next few years.

The agency expects the company’s credit metrics to continue to improve driven by a recovery in EBITDA beginning in fiscal 2017 and continuing in 2018 and 2019.

Debt/EBITDA is expected to decline to below 2 times in fiscal 2018 from 2.3 times in fiscal 2017 and FFO adjusted leverage is expected to improve to under 3 times in fiscal 2018 from 4 times in fiscal 2017.

EBITDA/interest is projected to improve to around 14 times from 11 times over the same period, Fitch explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.