Fitch assigns Olin, notes BBB-

Fitch Ratings said it assigned a first-time long-term issuer default rating of BBB- to Olin Corp. The agency also gave a BBB- rating to the company's senior unsecured revolver, senior unsecured term loan, and senior unsecured notes. The outlook is stable.

“Olin's BBB- IDR reflects the company's leading market positions across its main product lines, competitive cost position, high degree of vertical integration, and strong leverage and cash flow profiles.

“The rating is constrained by the cyclical and commoditized nature of many of the company's products. While the company's high exposure to the construction and industrial end markets is expected to adversely affect earnings performance in 2023, Fitch expects Olin's EBITDA margins to remain resilient assuming continued successful execution of the company's value optimization operating model,” the agency said in a statement.

The outlook mirrors expectations for EBITDA leverage to hover between 1.5x and 2x through the forecast horizon. “While the company retains significant flexibility to shift capital allocation policies, with around $900 million in annual FCF generation through the forecast horizon, Fitch assumes that any leveraging transaction will be followed up with a prioritization toward gross debt reduction back within the company's respective rating tolerances,” the agency said.

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