S&P changes Circor view to negative

S&P said it revised its outlook to negative and affirmed its B+ issuer credit rating on Circor International Inc.

The agency said the negative outlook reflects the company’s weaker than expected operating performance after acquiring Colfax's fluid handling segment in December 2017 and the possibility that S&P will downgrade the company if its adjusted debt to EBITDA does not improve closer to 6.5x over the next 12 months.

“While we expect that the pass through of various one-time acquisition-related costs and contributions from synergies will greatly improve operating margins over the next 12 months, we also recognize that ongoing restructuring costs from the company's legacy business or lower than expected sales growth could inhibit the company from improving credit metrics to levels consistent with the current rating,” S&P said in a news release.

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