S&P cuts Wells Enterprises

S&P said it downgraded Wells Enterprises Inc. and the rating on its $510 million senior secured term loan to B+ from BB-. The 3 recovery rating is unchanged (reflecting a rounded estimate recovery of 55% in the event of a payment default).

“The downgrade reflects our expectation for lower profitability because of higher-than-expected restructuring costs resulting in weaker credit metrics. Wells' leverage for the 12 months ended June 2020 remained elevated at close to 5.5x, which is well above our expectation for leverage to decline to well below 3.5x in the current fiscal year,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.