S&P ups Cornerstone Chemical

S&P said it raised its ratings on Cornerstone Chemical Co. and its senior secured notes to B- from CCC+ and revised the recovery rating to 3 from 4.

“Cornerstone saw very good improvement in its adjusted debt-to-EBITDA ratio during the past year. As of Dec. 31, 2021, it was 6.6x, down significantly from more than 11x at the same point the previous year. The company's adjusted EBITDA grew by almost four times in the fourth quarter of 2021 compared with the year-ago period, and we expect Cornerstone's adjusted EBITDA for the full-year 2022 to be much better this year relative to last year's performance,” S&P said in a press release.

The agency also noted Cornerstone refinanced its unrated asset-based revolving facility in January, upsizing it by $35 million to $125 million and extending the maturity to January 2027. “We expect the company to generate over $50 million of free cash flow this year.”

The outlook is positive.

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