S&P flips Sundyne view to positive

S&P said it changed the outlook for Star UK Midco Ltd. (Sundyne) to positive from negative and affirmed all its ratings, including the B- ratings on Star US Bidco LLC’s loans.

“The turnaround in the global economy and improved oil prices should support industry investment and Sundyne's backlog. Reduced demand for refined hydrocarbons increased industry capacity and, with Covid-19 pandemic-related restrictions on construction activity, may have slowed new investment. As of June 30, 2021, Sundyne's backlog–which predominantly comprises new equipment–was moderately below its Sept. 30, 2020, peak. However, we increasingly expect the 2021 recovery should support global refining activity and capacity investment,” the agency said in a press release.

The outlook indicates a possible upgrade over the next 12 months if Sundyne can sustain S&P Global Ratings-adjusted debt to EBITDA below 6.5x and deliver solid free operating cash flow, the agency said.

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