PMHC II Inc. 'CCC+' Rating Affirmed On Improved Credit Measures; Debt Ratings Unchanged, Outlook Stable

PMHC II Inc.'s credit measures have slightly improved from our previous expectations, however S&P Global Ratings still views those credit measures as unsustainable. Although the company has seen volume declines across nearly all verticals other than battery and agriculture, it has favorably managed costs and benefited from lower raw material spend resulting in stronger EBITDA than our previous expectations. We are affirming our 'CCC+' issuer credit rating on PMHC II. The 'CCC+' rating and '3' recovery rating on the first-lien facility is unchanged. The 'CCC' issue-level and '5' recovery ratings on the company's $150 million second-lien secured term loan is unchanged. The stable outlook reflects our expectation that PMHC's industrial segments will remain weak and experience coronavirus-related volume declines, leading

...July 24, 2020 - PMHC II Inc.'s credit measures have slightly improved from our previous expectations, however S&P Global Ratings still views those credit measures as unsustainable. - Although the company has seen volume declines across nearly all verticals other than battery and agriculture, it has favorably managed costs and benefited from lower raw material spend resulting in stronger EBITDA than our previous expectations. - We are affirming our '###+' issuer credit rating on PMHC II. - The '###+' rating and '3' recovery rating on the first-lien facility is unchanged. - The '###' issue-level and '5' recovery ratings on the company's $150 million second-lien secured term loan is unchanged. - The stable outlook reflects our expectation that PMHC's industrial segments will remain weak and experience coronavirus-related volume declines, leading to adjusted debt to EBITDA above 9x over the next 12 months. However, we do not expect the company's earnings to decline. NEW YORK (S&P Global Ratings)...

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