S&P trims Sequa ratings

Standard & Poor’s said it lowered its corporate credit rating on Sequa Corp. to B- from B. The outlook is stable.

At the same time, S&P lowered the issue-level rating on the company’s $1.5 billion senior secured credit facility (which comprises a $200 million revolver and $1.3 billion term loan) to B- from B and revised the recovery rating to 4 from 3. The 4 recovery rating indicates an expectation for average recovery (30%-50%) in a payment default scenario.

S&P also lowered its issue-level rating on the company’s unsecured debt to CCC from CCC+. The 6 recovery rating remains unchanged, indicating an expectation for negligible recovery (0%-10%) in a payment default scenario.

“The downgrade reflects weakness in Sequa’s credit measures and profitability, stemming from ongoing declines in demand in key markets and continued restructuring charges,” said S&P credit analyst Tatiana Kleiman in a news release.

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