S&P raises BBB Industries

S&P said it upgraded the ratings for GC EOS Buyer Inc. (BBB Industries) and its first-lien debt to B- from CCC+. The agency also raised the second-lien term loan to CCC from CCC-.

“We believe BBB Industries' credit measures will improve relative to our prior expectations. Based on our improved margin assumptions, we expect the company's credit measures to improve and its financial commitments to appear more sustainable. We expect debt to EBITDA to fall toward 7x this year and free operating cash flow (FOCF) to debt to average about 2% longer term,” S&P said in a press release.

However, the agency said it forecasts FOCF will be modestly negative in 2021 as BBB Industries rebuilds its working capital.

The outlook is stable.

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