S&P affirms Forterra, revises recovery rating

S&P said it affirmed its B- issuer credit rating on Forterra Inc. The outlook is stable.

At the same time, the agency affirmed the B- issue-level rating on Forterra's $1.25 billion first-lien term loan due 2023 (the same as the issuer credit rating) and revised the recovery rating on the term loan to 4 from 3, indicating an expectation of average (30% to 50%; rounded estimate: 40%) recovery for lenders in the event of a payment default.

S&P does not rate the company's $300 million asset-based lending (ABL) facility.

“The affirmation of the B- rating reflects Forterra's adequate liquidity maintenance despite the effect of continued cost inflation across its two segments,” S&P said in a news release.

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