S&P ups WireCo WorldGroup; rates loans B+, B-

S&P said it raised its corporate credit rating on WireCo WorldGroup Inc. to B from B-.

The outlook is stable.

At the same time, the agency assigned its B+ issue-level rating and 2 recovery rating to the company's proposed $410 million first-lien term loan due 2023. The 2 recovery rating indicates an expectation for substantial (70% to 90%; at the lower end of the range) recovery in the event of a payment default.

S&P also assigned its B- issue-level rating and 5 recovery rating to the company's proposed $185 million second-lien term loan due 2024. The 5 recovery rating indicates an expectation for modest (10% to 30%; at the upper end of the range) recovery in the event of a payment default.

"The stable outlook reflects our view that despite the current weakness in the company's oil and gas, mining, and industrial end markets, we expect WireCo's credit measures to remain at the stronger end of our highly leveraged financial risk assessment over the next 12 months," S&P credit analyst Michael Maggi said in a news release.

"Specifically, for the full year 2016, we expect adjusted debt to EBITDA to be between 6x and 6.5x, with modest improvement in 2017. We also expect EBITDA interest coverage to rise above 1.5x in 2016, but remain slightly below 2x in 2017."

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