Fitch Ratings affirmed NewMarket Corporation's Long-Term Issuer Default Rating (IDR) at 'BBB', along with its senior unsecured notes, revolving credit facility, and term loan. The Rating Outlook remains Stable, reflecting the company's consistent financial profile.
The 'BBB' rating is supported by NewMarket's stable earnings profile, strong free cash flow generation, and conservative capital allocation strategy. Fitch noted the company's ability to pass through costs and its financial flexibility to manage demand fluctuations or elevated input costs.
Fitch expects NewMarket to maintain EBITDA leverage between 1.5x and 2.0x, aligning with its conservative balance sheet management. The company's Net Debt to EBITDA ratio was 1.4 as of September 30, 2024, indicating a healthy financial position.
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