Compass Minerals International, Inc. announced that S&P Global Ratings upgraded its corporate credit rating to ‘B+’ from ‘B’, assigning a stable outlook. The rating action reflects the company’s reduced leverage and improved profitability, driven by debt repayment and higher highway deicing volumes. S&P also upgraded the rating on senior secured debt to ‘BB’ from ‘BB-’ and senior unsecured debt to ‘B+’ from ‘B’. Recovery ratings remained unchanged at ‘1’ for secured debt and ‘4’ for unsecured debt.

The upgrade follows a reduction in S&P Global Ratings-adjusted leverage to 3.1x for the last 12 months, down from 4.2x. S&P attributed this improvement to the company’s use of sale proceeds and cash on hand to retire $150 million of its 2027 senior unsecured notes. This action materially improved the debt profile and extended the weighted-average maturity. Additionally, higher profitability in the first quarter, supported by a significant increase in highway deicing volumes, contributed to the leverage reduction.

S&P’s stable outlook reflects the expectation that Compass Minerals will maintain leverage below 4x over the next two years. The agency anticipates this will be achieved through ongoing debt reduction, strategic initiatives, and favorable operating performance, though it expects volumes to taper in the coming year.

Ed Dowling, Chief Executive Officer, stated that the upgrade recognizes the company’s efforts to reduce debt and lower its leverage ratio. He described the rating action as a strong endorsement of the momentum created by building a stronger, more resilient business.

Rating Changes