S&P lowers Horsehead view to negative

Standard & Poor’s said it revised its outlook on Horsehead Holding Corp. to negative from stable and affirmed the B- corporate credit rating on the company, although S&P said it has “markedly lowered” its expectations for EBITDA and cash flow generation in 2014 and 2015.

S&P also affirmed the B- rating on the company’s senior secured notes. The 4 recovery rating on the notes is unchanged, indicating an expectation for average (30% to 50%) recovery of principal in the event of payment default.

“The outlook revision reflects the increased risk that the company’s new Mooresboro, N.C., facility may not meet our expectations for zinc production and profit generation,” said S&P credit analyst Gail Hessol in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.