S&P lowers Gopher view to stable

S&P said it revised the outlook on Gopher Resource LLC to stable from positive and affirmed its B issuer credit ratings.

The agency also affirmed the B rating and 3 recovery rating on the company's first-lien term loan due 2025 and revolving credit facility due 2023.

The outlook revision reflects an expectation that Gopher Resource's credit metrics will remain above the threshold for a higher rating, S&P said.

The main reason for this is higher-than-expected debt levels following the $35 million add-on to its term loan and the slower than anticipated ramp up at the company's plant in Florida, the agency said.

S&P said it previously expected the company's debt-to-EBITDA ratio to improve to about 4.5x in 2019.

The company should generate solid operational results supported by efficiency improvements and solid industry fundamentals, the agency said.

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