S&P shifts Wilsonart view to stable

S&P said it revised Wilsonart LLC’s outlook to stable from negative and affirmed its B+ ratings.

“We expect strong tailwinds in residential construction to offset declines in commercial construction end markets. S&P Global expects residential construction growth of 11.9% in 2021. We believe this growth will have a corresponding positive impact on Wilsonart's residential construction end markets (the majority of which is repair and remodel) which have historically contributed 25% of revenues but increased by 5%-10% in 2020,” the agency said in a press release.

S&P said it forecasts adjusted debt leverage of about 7x in 2021 compared to about 7.5x in 2020 and prior expectations of 8x-8.5x for 2020 when it revised the outlook to negative.

Also, the agency said it projects Wilsonart’s EBITDA to increase 5%-6% in 2021 after declining 11% in 2020.

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