S&P affirms Wesco

Standard & Poor's said it affirmed the B+ corporate credit rating on Wesco Holdings Inc. and lowered the $150 million second-lien term loan to B- from B with a 6 recovery rating.

The outlook is stable.

The corporate credit rating reflects relatively high debt leverage, weak cash flow protection measures and risks associated with cyclical demand for commercial aircraft, the company's largest end market, S&P said.

These factors outweigh Wesco Holdings' position as a leading distributor of small aerospace components and very good profit margins, the agency noted.

S&P said that although the initial debt-to-EBITDA was high at 6 times, profitable operations and some debt repayment reduced the ratio to about 4 times, pro forma for the Airtechnics acquisition.

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