We expect that U.S.-based frac sand and industrial minerals producer Covia Holdings Corp.'s average realization for frac sand will fall by about 25% for 2019. The company has been facing softening demand for frac sand since the second half of 2018, as a result of an oversupplied market. Therefore, we are lowering our issuer credit rating on Covia to 'BB-' from 'BB' due to our expectation for a weaker performance in its energy segment, despite the more steady results from its industrial business, and our assumption of some level of support from its majority owner, SCR-Sibelco N.V. At the same time, we are lowering our issue-level rating on Covia's $1.65 billion senior secured term loan to 'BB-' from 'BB'. The
