S&P upgrades WWEX UNI

S&P said it raised its issuer credit rating on WWEX UNI Intermediate Holdings LLC to B from B-.

The outlook is negative.

At the same time, the agency affirmed the B issue-level rating on WWEX's $60 million revolving credit facility due in 2022 and upsized first-lien term loan due in 2024, issued by subsidiaries REP WWEX Blocker LLC and SMB Shipping Logistics, LLC.

The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery of principal in the event of payment default.

In addition, the agency affirmed the CCC+ issue-level rating on WWEX's second-lien term loan due in 2025, also issued by REP WWEX Blocker and SMB Shipping Logistics. The recovery rating is 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

“The upgrade reflects the decrease compared to our previously expected 2018 leverage given that the company did not complete its proposed dividend recapitalization transaction,” S&P said in a news release.

“Through both acquisition and organic growth, along with integration initiatives, we believe WWEX will increase earnings and reduce adjusted leverage to the 6x area by year-end 2018, versus our prior expectation of over 7x debt to EBITDA.”

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