S&P upgrades Turning Point

S&P said it raised its corporate credit rating on Turning Point Brands Inc. to B+ from B. The outlook is stable.

At the same time, S&P raised its issue-level rating on the company's first-lien debt to BB from BB- and on its second-lien debt to B from CCC+.

The recovery rating on the first-lien debt remains 1, indicating an expectation for very high recovery (90%-100%, rounded estimate: 95%) in the event of a default. S&P revised the recovery rating on the second-lien debt to 5 from 6, indicating an expectation of modest recovery (10-30%, rounded estimate: 25%) in the event of a default.

“The upgrade reflects our expectation that TPB will continue to generate solid topline and profit growth, and that it will sustain credit ratios consistent with its publicly communicated, company defined leverage target of 2.5x-3.5x,” S&P said in a news release.

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