S&P assigns BBB- to Kennametal notes

S&P said it assigned its BBB- issue-level rating to Kennametal Inc.'s proposed senior unsecured notes.

The company plans to use the funds from these notes to repay its 2.65% senior notes due in 2019 and for general corporate purposes.

“Our corporate credit rating on Pittsburgh-based Kennametal reflects its competitive advantage as a maker of specialized tungsten carbide, ceramic, and other cutting tools for use in various industrial applications. Many of its products are consumables, allowing for recurring revenues,” S&P said in a news release.

“These strengths are partially offset by its participation in highly cyclical end markets like oil and gas, mining, and construction.”

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