S&P upgrades Gates Global

S&P said it raised its ratings on Gates Global LLC and its senior secured debt to BB- from B+ as well as its senior unsecured notes to B+ from B. The 3 recovery rating (65%) on the revolver and term loans and the 5 recovery rating (15%) on the notes are unchanged.

Private equity firm Blackstone cut its ownership stake to about 28% as of Tuesday, which the agency said it expects will lead to a more conservative financial policy.

“Gates' board of directors also primarily consists of members that are unaffiliated with Blackstone. Therefore, we no longer view the company as being controlled by a financial sponsor and believe Blackstone will have more limited influence over its financial policy,” S&P said in a press release.

The outlook is stable.

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