S&P trims INW Manufacturing

S&P said it trimmed its ratings on INW Manufacturing LLC and the company’s first-lien term loan to CCC+ from B-. The 3 recovery rating is unchanged.

“INW's profitability has deteriorated meaningfully because of a fire-related plant shutdown, high inflation, and supply-chain disruptions; we assume any profit recovery will be gradual. The company's third-quarter 2021 sales declined materially, accompanied by an even more significant drop in S&P Global Ratings-adjusted EBITDA, because of a fire at the company's main liquids facility and supply-chain problems, including steep input cost increases and labor shortages,” S&P said in a press release.

The agency warned it does not see INW beginning to return to profitability until the second quarter. S&P said it forecasts adjusted leverage approaching 9x over the next few quarters and EBITDA cash interest coverage will remain around 1.5x before improving somewhat in the latter half of 2022.

The outlook is negative.

© 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.