S&P downgrades Tensar

Standard & Poor’s said it lowered the corporate credit rating on the Tensar Corp. to B- from B.

The agency also said it lowered the ratings on the company’s $30 million revolving credit facility due 2019 and $235 million first-lien term loan due 2021 to B from B+.

The recovery rating remains at 2, indicating 70% to 90% expected default rating.

S&P also said it lowered the rating on the company’s $78 million second-lien term loan due 2022 to CCC+ from B-. The recovery rating remains at 5, indicating 10% to 30% expected default recovery.

The outlook is stable.

The company is expected to demonstrate modest performance growth over the next year because of higher infrastructure spending and commercial construction, S&P said.

The agency also said it believes that increased penetration of the company’s products will provide incremental revenues gains.

However, S&P said it forecasts that credit protection measures will remain commensurate with a highly leveraged financial risk profile over the next year, with leverage remaining at more than 10x.

© 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.