Fitch affirms Kennametal

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

“The rating is supported by KMT's strong market position in the fragmented cutting tool market globally due to solid product diversification and engineering leadership, conservative financial policies and a restructuring and modernization program that should continue to yield higher margins over the next few years,” the agency said in a news release.

“These factors are balanced against KMT's exposure to cyclical end markets and volatile raw material prices, resulting in uneven gross margins.”

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