S&P downgrades Circor

S&P said it lowered the issuer credit rating on Circor International Inc. to B from B+ to reflect S&P’s view of the company's reduced business scale and high, albeit improving, debt leverage.

At the same time, S&P said it lowered the issue-level ratings on the company's senior secured revolving credit facility and term loan to B from B+. The 3 recovery ratings on the debt instruments remain unchanged.

The outlook is stable.

“The downgrade reflects our expectation that Circor’s revenue and the scale of its operations will be weaker than we previously anticipated in 2019 and 2020,” S&P said in a news release.

“Although we expect the company's credit metrics to improve, we believe that it will reduce its leverage largely by using the proceeds from the sale of its non-core businesses to repay its debt rather than by expanding its organic EBITDA.”

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