S&P raises Mister Car Wash, loans to B

Standard & Poor's said it raised its corporate credit rating on Mister Car Wash Holdings Inc. to B from B-.

The outlook is stable.

The agency also raised its issue-level ratings on the company's senior secured credit facility to B from B-. The senior secured recovery rating remains unchanged at 3, indicating lenders could expect meaningful recovery in the event of a payment default, at the low end of the 50% to 70% range.

The company's capital structure consists of a $210 million senior secured credit facility and $87.5 million senior unsecured notes. The senior secured credit facility consists of a $30 million revolving credit facility maturing in 2019 and a $180 million first-lien term loan maturing in 2021. S&P does not rate the senior unsecured notes.

"We based the upgrade on the improvement of credit metrics over our expectations, such that leverage has meaningfully declined to the low-6x area for 2016 from the 8x area in early 2015 as the company continues to make internally funded acquisitions to increase its scale," S&P credit analyst Adam Melvin said in a news release.

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