S&P turns Kymera outlook to negative

S&P said it changed its outlook for Kymera International LLC (Alchemy International Holdings LLC) to negative from stable and affirmed the B- ratings on the company and its $425 million floating-rate term loan due 2025. The loan’s recovery rating remains 3 (55%). The agency lists Alchemy US Holdco 1 LLC as the borrower.

“While Kymera's earnings should improve over the next 12 months, we still see risk associated with the recovery and forecast leverage will remain elevated. EBITDA will likely be boosted by contributions from recent acquisitions, the recovery in aerospace volumes, cost savings from closing its New Jersey plant, and the ramp-up and capacity expansion at its North Carolina facility. Demand in Kymera's end markets has improved, and the recovery in the commercial aerospace market is going from strength to strength,” S&P said in a press release.

However, the weaker outlook reflects the risk of a downgrade if Kymera cannot sustain an improvement in earnings over the coming quarters, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.