Fitch rates Koppers BB-, loans BB+

Fitch Ratings said it assigned a first-time long-term issuer default rating of BB- to Koppers Holdings Inc. and its wholly owned issuing subsidiary Koppers Inc. Fitch also assigned long-term issue ratings of BB+/RR1 to Koppers Inc.'s new $400 million first-lien senior secured term loan B and existing $800 million first-lien senior secured revolver. The outlook is stable.

“The ratings reflect the company's leading competitive positions in stable markets, solid FCF generation, healthy leverage profile, and high degree of vertical integration. The rating is constrained by a narrow product focus, with earnings being highly correlated to the infrastructure and repair and remodel markets. Fitch recognizes that the company's exposure to these end markets has correspondingly enabled lower earnings and FCF volatility compared to issuers with more commoditized or cyclical product offerings,” the agency said in a press release.

The proceeds will refinance debt.

The outlook indicates expectations for EBITDA leverage to trend around 3.5x over the forecast horizon, Fitch said.

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