S&P cuts WireCo unsecured notes

Standard & Poor's said it affirmed the B+ corporate credit rating on WireCo WorldGroup, along with the BB rating on the $65 million add-on to the second-lien term loan due 2014. The recovery rating remains a 1, indicating 90% to 100% recovery in a default.

The agency also said it lowered the rating on the company's $275 million senior unsecured notes due 2017 to B- from B. The recovery rating is revised to 6 from 5, indicating 0% to 10% recovery in a default.

The outlook is stable.

The proceeds will be used to pursue near-term strategic initiatives, which could include additional acquisitions, S&P said.

The affirmation reflects an expectation that WireCo's operating performance will continue to improve because of strong sales growth and increasing end market demand resulting from an improving economy, the agency said.

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