S&P flips Circor view to positive

S&P said it revised Circor International Inc.’s outlook to positive from negative and affirmed all its ratings on the company, including the B- issuer rating.

“The company's end markets are recovering, and we believe Circor is on track to reduce leverage. The company improved its S&P Global Ratings-adjusted leverage to 7.3x as of June 30, 2021, from 8.2x at the end of 2020 largely on one-time charges rolling off. We estimate the company will continue its deleveraging path, reducing S&P Global Ratings-adjusted debt to EBITDA below 6x during the next 12 months through a combination of EBITDA growth and debt reduction,” the agency said in a press release.

The outlook reflects the potential for a one-notch upgrade over the next 12 months if the company improves EBITDA margins and uses free cash flow to repay debt, such that it trims its S&P Global Ratings-adjusted leverage below 6x, S&P said.

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