S&P downgrades U .S. Silica

S&P said it downgraded the ratings for U.S. Silica Co. and its $1.28 billion senior secured term loan to CCC+ from B-. The 3 recovery rating is unchanged, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default.

“Our revised forecast for U.S. Silica Co. acknowledges far more challenging operating conditions in oil and gas end markets than previously anticipated,” said S&P in a press release. S&P said it is now forecasting leverage for the company approaching 8x compared with the prior forecast of 3x-4x.

The outlook is negative.

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