S&P lowers Wesco Aircraft to SD

S&P said it lowered its issuer credit rating on Wesco Aircraft Holdings Inc. to SD (selective default) from CCC+ and the issue-level rating on the company's previously secured notes to D from CCC+.

Wesco Aircraft recently completed a recapitalization that included exchanging a portion of its secured notes into new first-lien notes and stripping security from the remaining previously secured notes.

The transaction included new money debt, providing Wesco with needed liquidity, and also reduced near-term cash interest payments and extended debt maturities.

“We view the transaction as a default on the company’s previously secured notes because non-participating noteholders were not adequately compensated for accepting a more junior position in the capital structure,” S&P said in a news release.

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