S&P boosts Southwire

S&P said it raised its ratings for Southwire Co. LLC to BB+ from BB and its secured term loan to BBB- from BB+.

“Southwire has continued to strengthen its financial position, which has provided it with the flexibility to pursue growth opportunities while maintaining a strong balance sheet. The company's significant earnings growth, free cash flow generation of over $1.5 billion, and almost $400 million of debt reduction over the last several years have led it to maintain a net cash position on an S&P Global Ratings-adjusted basis since 2020,” S&P said in a press release.

The agency said it sees Southwire maintaining leverage of 1.5x-2x, even after considering any large acquisitions.

The outlook is stable.

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