S&P pares Worthington

S&P said it lowered its ratings on Worthington Industries Inc. and its senior notes to BBB- from BBB.

Worthington completed the spinoff of Worthington Steel and will change its name to Worthington Enterprises Inc.

“We believe Worthington Enterprises has extensive experience operating in niche markets, generating leading market positions that have led to recognizable brands and pricing power across several of its product categories. However, its competitive position is characterized by its niche offerings in small market segments and narrow product focus. The company has high end-market concentration through its exposure to cyclical building materials and consumer end markets,” S&P said in a press release.

However, the agency said Worthington Enterprises could deliver pro forma EBITDA margins of 20% to 25%, which it regards as good compared with its peers in manufacturing consumer durables, capital goods or building materials segments

The outlook is stable.

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