Fitch rates Fairmount Santrol B-, facilities BB+

Fitch Ratings said it assigned a long-term issuer default rating of B- to Fairmount Santrol Inc. and Fairmount Santrol Holdings Inc.

The agency also assigned BB+/RR2 ratings to Fairmont Santrol’s senior secured revolver and term loans.

The outlook is stable.

About $840 million of debt is affected by this action.

Fitch said the rating reflects Fairmount's low cost assets and logistical advantages, increased demand from favorable proppant-related oil and gas well return trends, forecasted positive free cash flow (FCF), adequate liquidity, and improving gross debt position. These considerations are offset by the company's customer concentration and elevated recent historical and forecasted leverage metrics, the agency added.

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