S&P pares PLZ

S&P said it lowered its issuer rating for PLZ Corp. (formerly PLZ Aeroscience Corp.) to B- from B.

“PLZ's customers expressed general demand softness because the theme of persistent inventory destocking in the broader chemicals space has afflicted PLZ's products as well. The segments that experienced the heaviest sales contraction were contract packaging (down almost 20%) and food service (down 12%) while the retail and automotive specialty group segment and the distribution segment experienced adequate sales growth,” S&P said in a press release.

The agency noted the company’s cost-cutting measures, including plant closures in the fourth quarter of 2023 and mid-2024, but it expects PLZ’s credit measures to remain weak for the next year.

The outlook is stable.

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