S&P snips Ascend Performance

S&P said it lowered its ratings on Ascend Performance Materials Operations LLC and its senior secured term loan to B+ from BB-. The loan’s recovery rating is unchanged at 3(50%).

“Over the past two quarters, Ascend faced challenges due to supply chain issues, weak demand, and excess inventory. Moreover, a winter freeze in December 2022 caused one of their facilities to temporarily shut down, in order to continue serving their customers the company made the strategic decision to purchase intermediate chemicals from third parties at a cost above their own production.

“We now anticipate its leverage metrics will remain elevated over the next year. In the absence of any large, debt-funded acquisitions or shareholder returns, we project S&P Global Ratings-adjusted funds from operations (FFO) to debt of 10%-15% over the next 12 months,” S&P said in a press release.

The outlook is negative.

© 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.