S&P cuts CPG Intermedia

S&P said it lowered the ratings on CPG Intermediate LLC and its first-lien term loan and revolver to B- from B. The recovery rating remains 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for first-lien lenders.

“We expect the company's solvent cements, structural adhesives and diversified products businesses to be significantly hurt in 2020 by coronavirus-related business disruptions and lower consumer and industrial demand in a recession,” S&P said in a press release.

S&P said it now sees the company’s weighted-average debt to EBITDA to remain above 6.5x, versus its previous expectation of 5x-6x.

The outlook is stable.

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