S&P raises ATI

S&P said it raised its issuer credit rating on ATI Inc. to B+ from B and the issue-level ratings on ATI's senior unsecured notes to B+ from B and on its subsidiary, Allegheny Ludlum Corp.'s, unsecured debt to BB- from B+. The 4 and 2 recovery ratings, respectively, remain unchanged.

“ATI's credit metrics are recovering rapidly, and we now anticipate leverage of 4x in 2022. Given ATI's early stage in the supply chain, increasing original equipment manufacturer build rates lead to increasing order books and volume growth, which should translate into a return to positive free cash flow generation over the next 12 months,” S&P said in a press release.

However, the recovery will rely on good market conditions and aerospace recovery, the agency cautioned.

The outlook is stable.

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