S&P upgrades Sabre Industries

S&P said it upgraded Sabre Industries Inc. to B+ from B. Also, the agency upgraded the issue and recovery ratings on Sabre’s term loan to BB- and 2 from B and 3, respectively.

“Sabre’s credit ratios have strengthened in recent years on a combination of debt reduction and increased earnings. The company prepaid $31 million on its $445 million term loan during its fiscal first quarter (ending July 31), bringing S&P Global Ratings’ adjusted leverage down to 3x on a rolling 12-month basis,” S&P said in a press release.

“Sabre’s performance has remained resilient through the Covid-19 pandemic, given earnings stability provided by contracted backlog orders and alliance partnerships. Although we expect minimal revenue growth this year compared to last year’s 5% increase, an overall slowdown in infrastructure and construction spending will be offset by the company’s growing backlog of purchase orders,” the agency said.

The outlook is stable.

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