S&P changes Flexsys view to negative

S&P said it changed its outlook for Flexsys Inc. to negative from stable and affirmed its ratings, including the B foreign- and local-currency issuer ratings.

“Flexsys is facing a variety of headwinds. Revenue (ex-tolling) for the overall company was down 5.6% in the first quarter, with most of the decrease attributable to the antidegradants and stabilizers unit while the vulcanizing agents segment's revenue was flat. After experiencing a steady run-up from the depths of the pandemic, the company's antidegradants volumes have weakened since the start of 2022,” S&P said in a press release.

The agency said there is a three-in-one chance of a downgrade if it seems evident that Flexsys's credit measures will deteriorate to levels inappropriate for the ratings; for example, a weighted average adjusted debt to EBITDA ratio of below 6x.

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