S&P lowers Ascend Performance

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

Ascend missed the agency’s initial forecast and S&P said it sees a slow recovery for the company.

“We expect debt to EBITDA of over 9x at year-end 2023 driven by a more challenging operating environment and weaker second-half earnings than previously expected. We now believe demand pressures and unfavorable raw material pricing will hurt EBITDA more in the second half than it did in the first half of 2023. On a weighted-average basis, we project S&P Global Ratings-adjusted debt to EBITDA of 6.5x-7.5x and funds from operations (FFO) to debt of 7%-9%,” S&P said in a press release.

The outlook is negative.

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