S&P places NewMarket on watch

S&P said it placed its ratings for NewMarket Corp., including its BBB+ senior unsecured ratings, on CreditWatch with negative implications. Previously, the outlook was negative.

NewMarket announced it plans to buy Ampac Intermediate Holdings LLC, the ultimate parent holding company of American Pacific Corp., for about $700 million, which it will initially finance with revolver drawings.

The CreditWatch negative placement reflects the probability that we will lower our issuer credit rating on NewMarket by one notch due to its higher anticipated leverage following the Ampac acquisition.

“The CreditWatch negative placement reflects the probability that we will lower our issuer credit rating on NewMarket by one notch due to its higher anticipated leverage following the Ampac acquisition,” S&P said in statement.

The agency said it aims to resolve the negative watch when the deal closes in the first quarter of 2024.

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