Fitch trims Zinc-Polymer

Fitch Ratings said it downgraded the long-term issuer default rating on Zinc-Polymer Parent Holdings, LLC and the co-borrowers on the company's senior secured credit facility, Jadex Inc. (formerly Polymer Process Holdings, Inc.) and Zinc Holdings, Inc. to B- from B.

Fitch also downgraded the credit facility, comprised of a $50 million revolving credit facility and $355 million term loan, to B+/RR2 from BB-/RR2.

“The downgrade reflects weaker than expected performance in 2019 and expected pressure on ZP's business in 2020 as a result of the coronavirus-related economic downturn. Financial leverage is higher than expected and FCF is likely to be constrained over the near term. There is the potential for a sharper downturn in 2020 and a slower than expected recovery in ZP's credit profile beyond 2020,” said Fitch in a press release.

The outlook is stable.

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