S&P assigns B to Wirepath, loan

S&P said it assigned a B corporate credit rating to Wirepath LLC.

At the same time, the agency assigned a B issue-level and 3 recovery ratings to the company's proposed $50 million revolver expiring in 2022 and $265 million first-lien term loan due in 2024. The 3 recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of payment default.

S&P said the rating reflects its assessment of Wirepath's limited operating scale, narrow focus on home AV and networking product markets and potential industry cyclicality related to residential home construction and remodeling.

Those risks are partially mitigated by the company's established customer base and brand recognition among professional custom installation integrators, the agency added.

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