S&P lifts Darling to stable

S&P said it affirmed all of the ratings on Darling Ingredients Inc., including its BB+ corporate credit rating.

The agency also said it revised the outlook to stable from negative.

The agency also said it affirmed the BBB ratings on the company's secured credit facilities with 1 recovery rating, indicating 90% to 100% expected default recovery.

These facilities consist of its $1 billion revolving credit facility due September 2018, $200 million term loan A due September 2018 and $600 million term loan B due January 2021.

S&P also said it affirmed the BB+ rating on Darling's senior unsecured notes with a 3 recovery rating, indicating 50% to 70% expected default recovery.

The outlook revision reflects a belief that the company will continue to prioritize debt repayment and steadily reduce leverage, including debt-to-EBITDA approaching 3.5x over the next year, the agency explained.

S&P also said it expects improved free cash flow generation supported by a rebound in finished products pricing, volume growth from recent rendering, plant expansions and ongoing cash dividend receipts from its Diamond Green Diesel joint venture.

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