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Investing.com -- Moody’s Ratings has affirmed Avient Corporation’s Ba2 Corporate Family Rating while upgrading its senior secured first lien term loan to Baa3 from Ba1, with a stable outlook.
The upgrade of the term loan rating reflects Avient’s debt reduction efforts, including a $50 million repayment in the second quarter that brought the principal down to $670 million. The company plans to repay an additional $100-$200 million of debt this year.
Moody’s noted that Avient replaced its ABL revolver with a cash flow revolver that ranks equally with the term loan, further supporting the upgrade.
The Ba2 rating recognizes Avient’s scale, geographic reach, and diverse market exposure. About 51% of its 2024 sales came from less economically sensitive markets like packaging, healthcare, and consumer goods, while 7% came from the growing defense sector.
The company posted adjusted EBITDA margins of approximately 18.6% for the twelve months ended June 2025, including interest income, or about 17% without it. Moody’s highlighted Avient’s large cash balance, projected free cash flow, and expectations for earnings growth in 2025.
Avient has forecasted 4-6% EBITDA growth for 2025, excluding foreign currency impact, with strong demand in healthcare and defense offsetting consumer weakness. The company continues to focus on productivity improvements through sourcing, operations, cost control, and footprint optimization.
Constraints on Avient’s credit profile include its exposure to cyclical markets like industrial, building and construction, and transportation (35% of sales) and its elevated gross debt leverage of approximately 3.6x.
Moody’s maintained Avient’s Ba3 rating on senior unsecured notes and its Speculative Grade Liquidity Rating at SGL-1.
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