S&P downgrades Harsco

Standard & Poor's said it lowered Harsco Corp.'s corporate credit rating to BBB from BBB+, along with its short-term and commercial-paper ratings to A-3 from A-2.

The outlook is negative.

The ratings were removed from CreditWatch, where they were placed with negative implications in January.

The downgrades reflect the company's delayed progress in restoring its historical profitability, its weakened cash flow protection measures and an expectation that the company is unlikely to restore ratios adequate for the previous rating over the next two years, S&P said.

While the agency said it does expect some profitability improvement this year, to achieve this the company will need to execute on its ongoing restructuring plans.

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