Fitch affirms Sequa

Fitch said it affirmed Sequa Corp.’s issuer default rating at B-, senior first-lien secured revolver and term loan at B/RR3 and senior second-lien secured term loan at CCC/RR6.

The outlook is stable.

Rating concerns include Sequa's limited financial flexibility, volatile cash flows, moderate execution risk, recent weakness in the power market potentially affecting Sequa's joint ventures (JV), high degree of competition at Chromalloy and the cyclicality of both the aerospace and construction industries, which contributes to Sequa's sensitivity to economic downturns, Fitch said.

Sequa's B- IDR is supported by ongoing cost-cutting and restructuring initiatives, anticipated financial and operational improvements at the Chromalloy segment, the Precoat segment's leading market position and the company's experienced management team, the agency added.

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