S&P ups Vista Outdoor notes

S&P said it affirmed its B+ corporate credit rating on Vista Outdoor Inc. and revised the outlook to developing from stable.

The agency affirmed the BB issue-level rating on the company's $200 million revolver due 2021, which was reduced from $400 million, and $576 million outstanding term loan A due 2021.

The 1 recovery ratings indicate an expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default.

The agency raised the issue-level rating on the company's $350 million senior unsecured notes due 2023 to B from B- and revised the recovery rating to 5 from 6, indicating expectations for modest (10%-30%; rounded estimate: 20%) recovery.

S&P said the affirmation reflects an expectation that the company could deleverage if it is successful with its announced proposed asset sales, despite an expectation that operating performance will remain weak during the fiscal year ending March 31, 2019.

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