S&P revises Cushman first-lien debt recovery

S&P said it revised the recovery rating on Cushman & Wakefield's first-lien debt to 3, indicating 50% to 70% expected default recovery, from 4.

The agency also said it affirmed the company’s B+ issuer rating and stable outlook.

S&P also affirmed the B+ rating on the company's first-lien debt and B-issue rating on the company's second-lien debt.

The reduction in the refinancing of second-lien debt with first-lien debt decreases the amount of first-lien debt included in a default scenario, S&P explained.

This raises the recovery expectations for the first-lien debt, the agency added.

As a result, S&P said it revised the recovery rating to 3, indicating 50% to 70% expected default recovery, from 4.

The stable outlook considers an assumption that Cushman & Wakefield will focus on the integration of recent acquisitions during the remainder of 2016 and during 2017, S&P said.

The company’s central focus on extracting operational synergies will foster stabilization of the its long-term business strategy, the agency said, although the company is expected to remain highly leveraged at 5x to 6x.

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