S&P: Darling outlook to negative

Standard & Poor's said it affirmed all ratings on Darling Ingredients Inc., including its BB+ corporate credit rating, and revised the outlook to negative from stable.

"The outlook revision reflects our belief that leverage reduction delays will continue, in part because of weak finished products pricing – particularly fats – and foreign currency headwinds," S&P credit analyst Kim Logan said in a news release.

"In addition, the company continues to invest a significant amount of capital in growth initiatives, including two new wet pet food plants, two rendering plants, and a gelatin plant expansion in the U.S. this year. We now expect 2015 debt to EBITDA to be 4.3x, compared to our previous forecast of closer to 4x. Moreover, we continue to expect adjusted debt to EBITDA to remain near 4x in 2016 compared to our prior forecast of closer to 3.5x."

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