Fitch assigns AZZ BB-, loans BB+

Fitch Ratings said it assigned a first-time long-term issuer-default rating of BB- to AZZ Inc. The agency also assigned first-time BB+/RR1 ratings to AZZ's $1.3 billion first-lien secured term loan, with $1 billion outstanding, and its $400 million revolving credit facility. The outlook is stable.

“The ratings reflect AZZ's leading market share in hot-dip galvanizing and coil coating solutions, low exposure to commodity prices, commitment to deleveraging and variable cost structure. The ratings also consider the company's exposure to cyclical end markets,” Fitch said in a press release.

The outlook reflects the expectation that AZZ will keep focusing on deleveraging and managing its leverage (total debt excluding $240 million preferred shares to adjusted EBITDA) at or near its long-term target range of 2.5x-3x, Fitch said.

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