Houghton International Inc. 'B' Ratings Affirmed, Recovery Rating On Debt Revised To '3' On Improved Debt Management Feb 12
- Language: English
- Published: February 2012
- Region: Global
The ratings reflect Houghton International Inc.'s limited business diversity, exposure to cyclical end markets and volatile raw-material costs, and highly competitive industry dynamics that result in weak profit margins. Partially offsetting these weaknesses are the company's good geographic diversity and stable market position in the niche metalworking and chemicals management service markets. With annual revenues of about $432 million, Houghton operates in two business segments -- metalworking (70% of sales) and fluidcare (30% of sales). The metalworking segment provides specialty chemical fluids applied in metal processing operations. These products are used in a number of industries -- including automotive, aerospace, and construction -- and provide favorable characteristics such as lubrication, rust prevention, heat dissipation, and bacterial growth control in certain...
Companies mentioned in this report are: Houghton International Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >
Houghton International Inc.