S&P lowers WireCo view to negative

Standard & Poor's said it revised the outlook on WireCo WorldGroup Inc. to negative from stable and affirmed its B corporate credit and issue-level ratings.

The 2 recovery rating on WireCo's senior secured credit facilities due 2017 and 5 recovery rating on the company's 9˝% senior unsecured notes due 2017 are unchanged.

The 2 recovery rating indicates 70% to 90% expected default recovery. The 5 recovery rating indicates 10% to 30% default recovery.

WireCo is facing sizable debt maturities in the first half of 2017, as well as weakening credit measures with adjusted leverage of about 8x, S&P said.

The company’s cash balance and projected cash flows are unlikely to be sufficient to meet repayments, the agency said, and a lack of timely refinancing will reduce the company's liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.