S&P lifts Grainger view to positive

S&P said it revised the outlook on Grainger plc to positive from stable.

The agency also said it affirmed the company's BB long-term corporate credit rating.

S&P also said it affirmed the BBB- rating on Grainger's senior secured notes.

The 1 recovery rating, indicating 95% expected default recovery, is unchanged.

The outlook revision reflects a view that Grainger's EBITDA interest coverage ratio may strengthen more than currently anticipated as a result of further refinancing of higher yielding debt or stronger cash flow generation, S&P said.

The agency said Grainger's financial risk profile could improve to closer to its higher rated peers that enjoy solid EBITDA interest coverage of more than 3x.

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