Fitch turns MKS outlook to negative

Fitch Ratings said it changed its outlook for MKS Instruments, Inc. to negative from stable and affirmed the long-term issuer default rating at BB+. The agency also affirmed the senior secured term loan B rating at BBB- but revised the recovery rating to RR2 from RR1.

“The negative rating outlook reflects lower than previously forecast EBITDA from weakness in 1H23 end market demand and the 1Q23 ransomware event resulting in higher forecast EBITDA leverage compared to Fitch's prior review.

“Fitch could return the outlook to stable as MKS makes discretionary gross debt repayments from FCF that result in MKS' leverage returning to within its rating sensitivity boundaries during the typical 12-24 month outlook period,” the agency said in a press release.

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