Moody's cuts Koppers to stable

Moody's Investors Service said it changed the outlook for Koppers Holdings Inc. to stable from positive.

Moody's also affirmed the company's corporate family rating at Ba3 and probability of default rating at Ba3, along with Koppers Inc.'s senior unsecured guaranteed notes due 2019 at B1 (LGD 4, 69%).

The agency said the outlook revision reflects an expectation that financial metrics will not reach levels that would justify a higher rating over the next 12 to 18 months, despite reasonably good financial performance and balance sheet debt reduction over the last few years.

The stable outlook also considers the concern that management may undertake acquisitions to boost top-line growth with the prospect of increased debt, Moody's said.

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