...April 3, 2020 - U.S.-based frac sand and industrial minerals producer Covia Holdings Corp.'s customers are dealing with a sudden and dramatic collapse in prices for the oil and gas they produce. - Our assumptions include average oil prices for the rest of 2020 dropping as much as 55% from 2019 levels, which we believe will be a primary driver for doubling Covia's leverage in 2020 from 9.6x at the end of 2019. - Exacerbating the headwinds are the pre-existing state of oversupply in the frac sand industry, including the rise of Permian Basin supply in the south, which displaces Covia's northern white focused sand capacity. - We also revised our view, and now assume that if Covia were distressed in the near future, it would not receive support from its more conservatively capitalized and stable parent company, SCR-Sibelco N.V. - We believe Covia's financial commitments are unsustainable in the long term because of end market conditions. - As a result, we are lowering our issuer credit rating...
