S&P ends watch for Welbilt

S&P said it affirmed its BB- issuer credit rating on Welbilt Inc. The outlook is stable.

S&P said it removed its issuer credit rating and the issue-level rating on the company's senior unsecured notes due 2024 from CreditWatch, where the agency had placed them with negative implications on Oct. 4.

At the same time, S&P affirmed its BB- issue-level rating, with a 3 recovery rating, on the company's $400 million revolver due 2023 and $900 million term loan B due 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50-70%; rounded estimate: 50%) in the event of payment default.

S&P also lowered its issue-level rating on the company's senior unsecured notes due 2024 to B from B+ and revised the recovery-rating on the notes to 6 from 5.

“The rating affirmation and stable outlook reflect the improvement in covenant cushion following the recent amendment to the company's senior secured credit facility,” S&P said in a news release.

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