Moody's upgrades WireCo

Moody's Investors Service said it upgraded WireCo WorldGroup Inc.'s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD. Moody's also upgraded the ratings on the company's first-lien senior secured term loan to B3 from Caa1 and second-lien senior secured term loan to Caa2 from Caa3. The outlook was changed to stable from negative.

“WireCo's end markets, buoyed by industrials, have gained positive momentum from the lows experienced by Covid in the first half of 2020. An improvement in industrial and infrastructure activity, increased fishing demand, and higher oil rig counts have led to a rebound in orders for the company's broad portfolio of steel and synthetic rope, wire, and engineered products. Order intake momentum throughout 2021 and management's renewed focus and continued execution of operating efficiencies will support better credit metrics,” the agency said in a press release.

Moody's forecasts WireCo’s debt to EBITDA, inclusive of Moody's adjustments, to improve to 6.1x and 5.7x at the end of 2021 and 2022, respectively.

The stable outlook reflects sustained momentum of improving market conditions and an expectation that it will successfully execute cost efficiencies and margin protection measures, the agency said.

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