Fitch rates Vantage B, loans B+

Fitch Ratings said it assigned a first-time long-term issuer default rating of B to Vantage Specialty Chemicals, Inc. and B+/RR3 ratings to the company's senior secured revolver and term loan. The outlook is stable.

“Vantage's B IDR reflects the company's recent success revamping its commercial strategy with a focus on products and customers that generate higher profitability and asset utilization and away from volume, leading to a significant improvement in cash flow, leverage and coverage metrics. The rating is further supported by Vantage's competitive position, where the company benefits from high switching costs by customers for the majority of its revenue.

“The rating is constrained by the need to see the recently improved operating performance season over a more extended period and Vantage's geographic concentration,” Fitch said in a press release.

The outlook reflects expectations for EBITDA leverage to trend between 4.5x and 5.5x over the forecast period, the agency said.

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