S&P lowers Fairmount Santrol

Standard & Poor's said it lowered its corporate credit rating on Fairmount Santrol Inc. to B from BB-. The outlook is stable.

At the same time, S&P lowered the issue-level rating on the company's senior secured debt to B from BB-. The 4 recovery rating on the debt remains unchanged and indicates S&P’s expectation of average (30% to 50%; upper half of the range) recovery in the event of a payment default.

“The stable rating outlook reflects our expectation that Fairmount will maintain leverage of about 8x and funds from operations to debt below 12% over the next 12 months amid the challenging frac sand market environment,” said S&P credit analyst Ryan Gilmore in a news release.

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