S&P revises Omnova to stable

S&P said it affirmed its B corporate credit rating on Omnova Solutions Inc. and revised the outlook to stable from positive.

At the same time, the agency affirmed the B issue-level ratings on the company's first-lien term loan. The recovery rating remains 3, reflecting an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

“The outlook revision follows weaker-than-expected volume performance thus far in fiscal 2017, and our expectation that EBITDA and weighted-average credit measures will not improve as much as we had previously forecasted,” S&P said in a news release.

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