S&P raises Marsulex outlook to positive

Standard & Poor's said it revised its outlook on Marsulex Inc. to positive from stable.

At the same time, the agency said it affirmed its BB- long-term corporate credit rating on the company.

The outlook revision reflects the expectation that Marsulex has the capacity to improve its financial risk profile in the next one to two years, as the company continues to realize increased cash flows following its recent acquisitions and completion of its facilities expansions, the agency added.

S&P noted that the ratings on Marsulex reflect the company's aggressive debt leverage, reliance on the outsourcing requirements of its customers and its participation in a competitive market without a dominant market share.

Somewhat mitigating these weaknesses are the company's large percentage of established long-term, fee-based contracts which provide a secure base of cash flow and earnings, its stable long-term customer relationships and solid EBITDA margins on services provided, the agency said.

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