S&P cuts Kraton

S&P said it lowered its ratings for Kraton Corp. and its senior secured term loan to BB- from BB, citing an initially weaker-than-expected performance. The recovery rating on the loan is 2 (rounded estimate: 75%).

“The downgrade reflects Kraton's underperformance and our expectation for continued weakness in 2023. Kraton continues to face challenges due to weak demand and excess inventory. Moreover, bad weather across Europe early in the year hampered the roofing and paving season. We now anticipate its leverage will remain elevated over the next year,” S&P said in a statement.

The outlook is stable.

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