Vantage Specialty Battered on High Leverage, Weak Credit Metrics

Register, or to view the article

On November 2, 2020, S&P Global Ratings lowered its issuer credit rating on Vantage Specialty Chemicals, Inc. to CCC+ from B-. The ratings agency now expects 2020 EBITDA and credit metrics will remain weaker than 2019 levels because of softness in the Company's high-end personal care and industrial segments. Following a weak 2019, the coronavirus pandemic has also impaired Vantage Specialty’s industrial end markets. S&P Global now expects leverage to remain high through 2020 and into 2021. Although the ratings agency believes the Company has adequately managed its expenses thus far in 2020, its weighted-average debt to EBITDA will be above 9x, which S&P views as unsustainable.

Read more Bankruptcy News