S&P changes W3 Topco to stable

S&P said it affirmed its B- corporate credit rating on W3 Topco LLC and revised the outlook to stable from negative.

The agency also affirmed the B- issue-level rating on W3's senior secured term loan. The 3 recovery rating indicates an expectation of meaningful (50% to 70%; rounded estimate: 60%) recovery to creditors in the event of a payment default.

S&P said the revision follows W3's capital restructuring in mid-2017, through which it exchanged 100% of its outstanding first- and second-lien debt totaling $490 million including unpaid interest and fees, issued by predecessor company W3 Co., for 100% of newly-issued common stock and a $175 million secured term loan maturing in 2022.

At the same time, improved profitability in the refining sector and stabilization of the oil and gas sector due to higher oil prices provide more opportunities to market W3's safety products and services, the agency said.

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