Moody’s alters Enviri outlook to stable

Moody’s Ratings said it changed its outlook for Enviri Corp. (formerly Harsco Corp.) to stable from negative and affirmed the B1 corporate family rating and B1-PD probability of default rating. Concurrently, Moody's affirmed the Ba3 rating on Enviri's senior secured bank credit facility, consisting of a revolving credit facility and term loan, and the B3 rating on the company's senior unsecured notes. The SGL-3 speculative grade liquidity rating remains unchanged.

“The affirmation of the ratings and the outlook change to stable from negative reflect Enviri's improved operating performance and Moody's expectation for Enviri to build on its positive momentum, with credit metrics improving over the next year.

“This will be driven by healthy waste volumes and pricing and efficiency initiatives in the Clean Earth (CE) segment, helping to offset modest volumes at Harsco Environmental (HE) as global steel production remains subdued. HE's higher service pricing, new contract wins and efficiency actions will also support results,” the agency said in a press release.

Moody’s said it forecasts Enviri's leverage to improve through 2024 from about 5x in fiscal 2023 (about 4.8x pro forma for Enviri's rail business EBITDA classified as discontinued operations).

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