S&P elevates CWGS Enterprises

S&P said it raised its corporate credit rating on CWGS Enterprises LLC to BB- from B+. The outlook is stable.

At the same time, S&P assigned a BB+ issue-level rating (two notches above the corporate credit rating) and 1 recovery rating to the proposed senior secured credit facility (consisting of a $35 million revolver due 2021 and a $645 million term loan due 2023). The recovery rating on this debt is 1, reflecting an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.

“The upgrade reflects our belief that the company's financial policy supports maintaining adjusted debt to EBITDA below 4x, despite future anticipated RV sales variability and the resulting EBITDA volatility that can occur during periods of economic stress,” said S&P credit analyst Daniel Pianki in a news release.

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