S&P downgrades Sequa

S&P said it lowered its issuer credit rating on Sequa Corp. to CCC+ from B-. The outlook is stable.

At the same time, the agency lowered its issue-level rating on the company's first-lien credit facility consisting of a $135 million revolver and $920 million first-lien term loan, both due 2021, to CCC+ from B-. S&P revised the recovery rating to 4 from 3, indicating an expectation for average recovery (30%-50%; rounded estimate: 45%) in a default scenario.

Additionally, S&P lowered its issue-level rating on the company's $350 million second-lien term loan due 2022 to CCC- from CCC. The 6 recovery remains unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate 0%) in a default scenario.

“The downgrade reflects our view that although Sequa Corp.'s near-term liquidity is adequate, we believe that the company's long-term financial commitments are unsustainable based on our expectations of continued weak operating performance through 2019,” S&P said in a news release.

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