S&P revises Kraton view to positive

S&P said it revised Kraton Corp.’s outlook to positive from negative and affirmed its ratings, including the B+ issuer rating.

“The outlook revision reflects Kraton's better-than-anticipated performance over the past several quarters and our view that its credit metrics have the potential to strengthen over the next year or two if debt levels do not increase substantially from current levels. A decline in debt over the past year, in addition to the refinancing of its ABL and unsecured notes, has contributed to our view that credit measures will be at the high end of our expectations at the current rating over the next 12 months,” S&P said in a press release.

The agency said it forecasts Kraton’s ratio of funds from operations (FFO) to total debt will approach 20% over the next two years on a weighted-average basis.

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