S&P upgrades Welbilt

S&P said it raised the ratings on Welbilt Inc. and its term loan to B- from CCC+ and its senior unsecured notes to CCC+ from CCC.

“Welbilt Inc.'s sales, EBITDA margins and cash flow have sequentially improved amid the recovery in the commercial foodservice industry. Additionally, the company generated positive free operating cash flow (FOCF) and repaid a portion of the outstanding debt under its revolving credit facility such that we now believe a covenant breach is less likely over the next 12 months,” S&P said in a press release.

The agency said it sees Welbilt's adjusted leverage improving to below 6.5x over the next 12 months.

The outlook is positive.

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