S&P puts Gopher Resource on negative watch

S&P said it placed its ratings on Gopher Resource LLC, including the B issuer credit rating, on CreditWatch with negative implications.

Gopher ended fiscal year 2020 with very high adjusted leverage of 7.5x EBITDA.

EBITDA dropped about 30% in 2020 from 2019 in part due to the temporary closure of its Tampa, Fla., plant at the onset of the Covid-19 pandemic.

More recently, news reports allege Gopher exposed its employees to excessive lead levels at the Tampa plant.

“The CreditWatch placement acknowledges Gopher's very high leverage at the start of fiscal year 2021 as well as indeterminate risks associated with news reports that employees were exposed to high lead levels in the air at the company's Tampa plant. These actions do not speak to the veracity of the health and safety claims,” S&P said in a news release.

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