S&P puts Wesco on watch

S&P said it placed all its ratings, including the BB issuer credit ratings on Wesco International Inc. and its subsidiary Wesco Distribution Inc. on CreditWatch with negative implications.

The placement follows the announcement Wesco plans to acquire Anixter International Inc. with a mix of debt, equity-content securities, preferred shares and common stock.

“The CreditWatch negative placement reflects our expectation that, despite a substantial increase in scale, Wesco's credit ratios will deteriorate significantly following the close of its acquisition of Anixter. We do not yet know the terms of the expected equity-content securities issuance, which will inform our S&P Global Ratings' adjusted leverage forecast,” said S&P in a press release.

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