S&P upgrades Wolverine

Standard & Poor's said it raised the corporate credit rating on Wolverine World Wide Inc. to BB from BB-.

The agency also said it raised the rating to BBB- from BB on the company's senior secured debt comprised of a $200 million revolver and $775 million term loan both due in 2018. S&P also said it revised the recovery rating on this debt to 1 from 2, indicating 90% to 100% expected default recovery.

The improved recovery prospects were attributable to the company's lower debt levels, the agency said.

S&P also said it raised the rating on the company's $375 million senior unsecured 6 1/8% notes due 2020 to BB from B+ and revised the recovery rating to 3 from 5, indicating 50% to 70% expected default recovery.

The outlook is stable.

The one-notch upgrade reflects a view that Wolverine could sustain its improved credit measures following debt reduction and EBITDA growth, S&P said.

Adjusted debt-to-EBITDA leverage, including restructuring and acquisition related costs, has declined to about 3.5x for fiscal 2013, down from the high-4x range for fiscal 2012, the agency said.

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