Fitch cuts Harsco, loans, notes

Fitch Ratings said it lowered its rating on Harsco Corp.’s long-term issuer default rating to BB from BB+, secured revolver and term loan to BB+/RR1 from BBB-/RR1 and senior unsecured notes to BB/RR4 from BB+/RR4.

The ratings were removed from Negative Watch, where they were placed in November 2015. Harsco had $911 million of debt outstanding as of Dec. 31, 2015.

The outlook is negative.

Fitch said the downgrade reflects weak results in Harsco's metals and mining (M&M) and industrial businesses, and the resulting pressure on the company's credit metrics. The agency expects further deterioration in 2016, though the suspension of the dividend will support liquidity going forward.

The BB issuer default rating reflects Harsco's credit profile given its current business mix and is the highest likely rating outcome should the company separate its M&M business, as it intends to do.

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