Fitch to rate Brookfield WEC, facilities

Fitch Ratings said it expects to assign Brookfield WEC Holdings, Inc., operating under the name Westinghouse Electric Co., a B long-term issuer default rating.

In addition, Fitch expects to assign a BB/RR1 rating to the company’s ABL revolving credit facility, BB-/RR2 ratings to its first-lien revolving credit facility and term loan credit facility and a CCC+/RR6 rating to its second-lien term loan facility.

The expected outlook is stable.

The expected ratings are contingent on the completion of the planned $3.8 billion acquisition of Westinghouse out of bankruptcy by Brookfield Asset Management under the terms outlined by the company.

The acquisition by Brookfield, along with transaction fees, will be funded with a $2.6 billion of first-lien term loan, $450 million of second-lien term loan and $1 billion of equity from Brookfield.

Fitch said the ratings reflect initially high financial leverage as Westinghouse emerges from bankruptcy, which is expected to occur in the third quarter of 2018, but also the capacity to deleverage with FCF.

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