S&P rates Matthews notes B+

S&P said it assigned its BB corporate credit rating to Matthews International Corp. The outlook is stable.

At the same time, the agency assigned a B+ senior unsecured debt rating and 6 recovery rating to Matthews' new $300 million in senior unsecured notes due 2025. The 6 recovery rating indicates expectations for negligible (0%-10%; rounded estimate: 5%) recovery in the event of default.

S&P said the ratings on Matthews International reflects the company's solid positions in the steady, but low-growth, memorialization and brand solutions businesses, the relative diversity of its operations, and limited exposure to economic downturns. These factors are offset by a recently accelerated pace of acquisitions that have elevated adjusted net debt leverage, currently at a S&P Global Ratings' adjusted 4.6x, that S&P expects to be in the 4x-5x range over the next one to two years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.