S&P cuts Forterra, loan to B-

S&P said it lowered its corporate credit rating on Forterra Inc. and the issue-level rating on its $1.25 billion first-lien term loan due 2023 to B-.

The 3 recovery rating on the first-lien term loan is unchanged, indicating an expectation of meaningful (50% to 70%; round estimate: 50%) recovery for lenders in the event of a payment default.

S&P did not rate the company's $300 million ABL facility.

The outlook is stable.

“The downgrade on Forterra's corporate credit rating reflects the company's large spike in debt leverage following a significant deterioration of profit margins,” the agency said in a news release.

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