S&P boosts Wesco

S&P said it boosted its ratings for Wesco International Inc. and Wesco Distribution Inc. to BB from BB-. The agency also raised Wesco Distribution’s senior unsecured notes to BB from BB- and the issue-level rating on Anixter Inc.'s senior unsecured notes to BB- from B+.

“The upgrade reflects Wesco's stronger-than-anticipated performance in 2021 and our forecast for a continued improvement in its earnings. The company increased its sales by about 14% year over year in 2021 pro forma for its acquisition of Anixter International Inc., which closed in June 2020. At the same time, Wesco expanded its EBITDA by about 37%. Healthy demand for the company's products supported rapid deleveraging, enabling it to end the year with S&P Global Ratings-adjusted debt to EBITDA of 4.5x,” S&P said in a press release.

The agency said it forecasts Wesco trimming its leverage to about 4x in 2022.

The outlook is stable.

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