Compass Minerals Announces S&P Global Ratings Upgrade to B+

Key Terms

senior secured debt financial

Senior secured debt is a loan or bond that has first claim on specific company assets if the company cannot meet its obligations; “senior” means it ranks ahead of other debts and “secured” means it is backed by collateral. Investors care because it usually carries lower risk and lower interest than unsecured debt: in a default holders of senior secured debt are likeliest to recover some money, so this status affects expected returns and safety compared with other claims.

senior unsecured debt financial

A senior unsecured debt is a loan or bond that a company must repay before other unsecured obligations but is not backed by specific assets as collateral. Think of it as being earlier in line for repayment, like a preferred ticket in a queue, but without a guarantee you’ll get property if the company fails; that priority reduces risk compared with junior debt and affects expected interest rates and recovery prospects for investors.

recovery rating financial

A recovery rating is an estimate of how much money creditors or investors are likely to get back if a company defaults or enters bankruptcy, usually shown as a percentage or a simple grade. It matters because it helps investors gauge downside risk and potential losses—like knowing how much value you could salvage from a broken appliance—so higher recovery ratings generally mean less expected loss and influence bond prices and lending decisions.

leverage financial

Leverage is the use of borrowed money or other financial tools to try to amplify the returns from an investment, like using a crowbar to move a heavier rock than you could with your hands. It can boost gains when things go well but also magnifies losses and the chances of running into trouble if income or asset values fall, so investors watch leverage to judge both growth potential and financial risk.

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OVERLAND PARK, Kan.--(BUSINESS WIRE)--

Compass Minerals International, Inc. (NYSE: CMP) (“Compass Minerals” or the “Company”) today announced that S&P Global Ratings has upgraded the Company’s corporate credit rating to ‘B+’ from ‘B’, with a stable outlook. S&P also upgraded the rating on the Company’s senior secured debt to ‘BB’ from ‘BB-‘ and senior unsecured debt to ‘B+’ from ‘B’. In addition, S&P’s ‘1’ recovery rating on the secured debt and ‘4’ recovery rating on the unsecured debt are unchanged.

The upgrade reflects S&P’s view that the Company’s debt paydown and improved profitability for leverage reduction has lowered S&P Global Ratings-adjusted leverage from 4.2x to 3.1x for the last 12 months. S&P noted the Company used “sale proceeds with cash on the balance sheet to retire $150 million of its 2027 senior unsecured notes, materially improving its debt profile and extending weighted-average maturity. Additionally, higher profitability in the first quarter from a significant increase in highway deicing volumes reduced leverage.”

S&P also noted: “The stable outlook reflects our expectation that Compass will maintain leverage below 4x in the next two years from debt reduction, strategic initiatives, and favorable operating performance, although we anticipate volumes will taper down next year.”

Ed Dowling, Chief Executive Officer, said: “We are very proud that S&P has recognized the hard work we have done to reduce our debt and lower our leverage ratio. The upgrade is a strong endorsement and reflects the momentum Compass Minerals has created by building a stronger, more resilient business with a solid platform to deliver long-term shareholder value.”

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 11 production and packaging facilities with more than 1,800 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

Forward-Looking Statements and Other Disclaimers

This press release may contain forward-looking statements. These statements are based on the Company’s current expectations, estimates and projections and involve risks and uncertainties that could cause the Company’s actual results to differ materially. The differences could be caused by several factors including those factors identified in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual and Quarterly Reports on Forms 10-K and 10-Q, including any amendments, as well as the Company’s other SEC filings. Opinions expressed are current opinions as of the date hereof. Investors are cautioned not to place undue reliance on such forward-looking statements and should rely on their own assessment of an investment. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260628755710/en/

Investor Contact
Brent Collins
Vice President, Treasurer & Investor Relations
+1.913.344.9111
InvestorRelations@compassminerals.com

Media Contact
Kevin Gabriel
Senior Director, Corporate Affairs
+1.913.344.9265
MediaRelations@compassminerals.com

Source: Compass Minerals