S&P Global Ratings revised the outlook for Air Products and Chemicals Inc. to stable from negative. The agency affirmed the company’s A issuer credit rating.
This revision follows management’s decision to exit high-risk, high-spending initiatives such as the Louisiana Clean Energy complex. S&P views the move as a credit positive despite resulting in significant pre-tax charges.
Exiting these projects reduces spending on uncertain returns and strengthens cash flow. The company’s funds from operations to debt ratio has already shown improvement.
Air Products plans to pivot its growth strategy toward traditional industrial gas projects.