S&P trims Sensience

S&P said it lowered its ratings on Sensience Inc. and its first-lien term loan to CCC from CCC+. The agency also trimmed the rating on the second-lien term loan to CCC- from CCC.

“Our downgrade reflects our belief that Sensience's liquidity position will face heightened pressure in the next few quarters given our forecast for interest rates to remain higher for longer. Our most recent U.S. macroeconomic forecast now calls for a multi-quarter period of subpotential economic growth, under which monetary policy rates will be higher for longer.

“All Sensience's debt is floating rate in nature, and we now expect that over the next year interest expense will remain at least at current levels, which is lower than our forecast for S&P Global Ratings-adjusted EBITDA,” S&P said in a press release.

Additionally, the agency warned it considers the company’s capital structure as “unsustainable” and the potential for a liquidity shortfall or payment default as increasingly probable over the next 12 months.

The outlook is negative.

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