S&P turns C&D outlook to stable

S&P said it changed its outlook for C&D Technologies Inc. to stable from positive and affirmed the B- ratings on the company and its $400 million first-lien term loan. The loan’s 3 recovery rating is unchanged.

“We expect C&D to continue to face an inflationary environment through most of 2022. With solid momentum and a large backlog headed into 2022, the company should continue to benefit from strong demand trends, with revenue growth in the low- to mid-teen percents. However, significant headwinds in raw material and freight costs will likely persist for at least the next six to 12 months,” the agency said in a press release.

The outlook indicates an expectation it will generate positive free operating cash flow and maintain leverage in the mid- to high-6x range over the next 12 months, supported by strong demand momentum and new product launches amid continued cost inflation, S&P said.

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