S&P ups W3 loan recovery to 3

Standard & Poor's said it revised the recovery rating on W3 Holdings Inc.'s senior secured credit facilities to 3, indicating 50% to 70% expected recovery in a default, from 4.

The rating on W3's senior secured credit facilities remains B-.

The improved recovery rating reflects a higher estimated emergence value for W3 due to improved market conditions that are expected to support a sustained higher value for the company, S&P said.

The B- corporate credit rating and stable outlook on the company incorporate the company's aggressive financial leverage and its narrow business focus, along with its small scale in the fragmented market for safety equipment and maintenance services, the agency said.

The ratings also reflect the company's adequate near-term liquidity, low capital spending requirements, low volatility of demand for its products and services and its diversified customer base, S&P said.

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