S&P changes ATI outlook to positive

S&P said it changed its outlook for ATI Inc. to positive from stable and affirmed its B+ ratings on the company and its senior unsecured notes.

“We continue to see ATI's business and competitive position improve, demonstrated by its rapid recovery in earnings and credit metrics. ATI has restructured and streamlined its asset portfolio over the last two years, taking out costs and pivoting production capacity toward higher-value aerospace volumes. A shift in ATI's product mix and commercial strategy toward growing its aerospace business should support a sustained improvement in its competitive position,’ S&P said in a press release.

The agency noted ATI shaved its debt to EBITDA to 3x as of June 30, compared to 4.5x a year ago. “We expect ATI to generate EBITDA of about $650 million this year and we see potential for earnings to continue to expand in 2024 and onwards.”

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