Moody's keeps Kraton under review

Moody's Investors Service's said its ratings for Kraton Polymers LLC, including the B2 corporate family rating, remain under review for possible downgrade.

The continued review follows the company's announcement that it will explore refinancing options to improve financial flexibility. The agency said that if successful, such a refinancing could improve the company's near-term liquidity and the covenant pressures that Moody's believes are associated with Kraton's current credit facilities.

However, Moody's said any gain in flexibility comes with a cost of much higher cash interest expense that, absent pricing efforts to improve margins, will further depress cash flows and weaken credit metrics.

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