S&P rates Crackle B, affirms Wirepath

S&P said it assigned its B issuer credit rating to Crackle Intermediate Corp. and affirmed the B issuer credit rating on Wirepath LLC.

Crackle Intermediate is the parent of Wirepath and the entity that issues the audited financial statements.

The outlook is stable.

S&P also affirmed the B issue-level rating on Wirepath's existing $50 million revolver expiring August 2022 and $265 million first-lien term loan due August 2024. The recovery ratings remain 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of payment default.

“The rating reflects the company's limited operating scale based on revenues of about $260 million in 2017, narrow focus on consumer AV and networking product, and exposure to the cyclical residential construction and remodeling markets,” S&P said in a news release.

“However, the company's established customer base and brand recognition among professional custom installation integrators partially mitigate those risks.”

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