S&P lowers Sequa to negative

Standard & Poor's said it revised the outlook on Sequa Corp. to negative from stable.

The agency also said it affirmed its B corporate credit rating, along with the B rating and a 3 recovery rating on the company's $1.5 billion senior secured credit facility, consisting of a $200 million revolver and a $1.3 billion term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it affirmed the CCC+ rating and 6 recovery rating on the senior unsecured notes. The 6 recovery rating 0% to 10% expected default recovery.

The outlook revision reflects a view that weakness in key markets will weaken the company's credit ratios in 2013 and that these ratios will only modestly improve in 2014, S&P said.

Sales in the company's largest segment, Chromalloy, fell 15% in the first half of 2013 as a result of deferred engine maintenance from airline customers and competition from a surplus of engine spare parts as airlines retired old aircraft, the agency said.

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