S&P revises Rain Carbon view to stable

S&P said it revised Rain Carbon Inc.’s outlook to stable from negative.

“RCI's cash flows will benefit from improving operating conditions over the next 12-18 months. Demand for calcined petroleum coke (CPC) and coal tar pitch (CTP) should stay healthy thanks to strong demand from the aluminum industry, which accounts for 55%-60% of RCI's revenues,” S&P said in a press release.

“RCI's operating cash flows will be more than sufficient to meet its investment requirements and shareholder distributions. As such, we believe the company will continue to accumulate healthy surplus cash, which will support deleveraging. RCI's FFO-to-debt ratio is likely to remain at 15%-16% over the next two years, above our downgrade trigger of 12%,” S&P noted.

Concurrently, the agency affirmed the company’s B+ issuer rating, the BB rating on its first-lien term loan and revolver and B rating on its second-lien notes due 2025.

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