S&P alters Vantage view to stable

S&P said it changed the outlook for Vantage Specialty Chemicals Inc. to stable from negative.

“Following a weak 2019, and a 2020 that was hit by declining demand in high-end personal care and industrial end markets as the result of the Covid-19 pandemic, Vantage has seen a pick-up in demand through the back half of 2020 and thus far in 2021. Vantage has benefitted from increased demand across the personal care, food ingredients, and industrials end markets,” the agency said in a press release.

The outlook on Vantage reflects a forecast that, while weighted-average debt to EBITDA will likely remain at what S&P said it views as unsustainable levels, it foresees the company delivering positive free cash flow in 2022 while maintaining adequate liquidity.

Concurrently, S&P affirmed Vantage’s CCC+ rating, the CCC+ rating on its first-lien credit facility and the CCC- rating on its second-lien credit facility. The 3 and 6 recovery ratings, respectively, are unchanged.

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