Research Update: Reichhold Industries Inc. Rating Lowered To 'CCC+' From 'B-', Issue-Level Ratings Also Lowered; The Outlook Is Negative Dec 11
- Language: English
- Published: December 2011
The rating on Durham, N.C.-based Reichhold Industries Inc., a producer of unsaturated polyester resins used for composite applications and resins used for coatings by architectural and industrial customers, reflects the company's highly leveraged financial profile, low operating margins, and cyclical and competitive markets. These factors are somewhat mitigated by Reichhold's decent market positions in its resins product lines, geographic diversity of sales, adequate liquidity, and management's commitment to maintain future liquidity at reasonable levels through effective working capital management and scaling back of capital expenditures in the near term. The company continues to be highly leveraged at about 8.7x through Dec. 31, 2010, and operating margins (before depreciation and amortization) have remained low in the mid-single-digit percentage area for the...
Companies mentioned in this report are: Reichhold Industries Inc.
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