S&P lowers KAMC Holdings

S&P said it lowered the issuer credit rating on KAMC Holdings Inc. (d/b/a Franklin Energy) to B- from B.

The agency also lowered the ratings on the company's first-lien credit facility to B- from B and its second-lien term to CCC from CCC-. The recovery ratings are unchanged.

The outlook is stable.

“The downgrade reflects our expectations that Covid-19-related business disruption will uphold leverage above 7x through 2021,” S&P said in a news release.

“Meaningful demand reduction related to Covid-19 social isolation restrictions, combined with weaker-than-anticipated performance in 2019, and a still uncertain path to recovery, support our view that leverage is likely to increase to about 8x in 2020 and remain above 7x through 2021.”

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