Moody’s lifts Total Safety, rates loan B3

Moody's Investors Service said it upgraded the corporate family rating of W3 Topco LLC, (formerly W3 Co.), a holding company of Total Safety U.S. Inc., to B3 from Caa3.

At the same time, the agency assigned a B3 rating to the company's new term loan due 2022 and upgraded the probability of default rating to B3-PD from Caa3-PD.

The outlook was changed to stable.

In March 2017, Total Safety restructured its then-existing equity and its first-lien revolver, first-lien term loan and second-lien term loan, and exchanged them for the new term loan and equity. Moody's said it viewed this restructuring as a distressed exchange and considered it a default event.

The transaction resulted in reduction of Total Safety's long-term debt from $460 million to $197 million.

"The newly assigned B3 rating for Total Safety's term loan reflects the company's less-burdened capital structure resulting from the considerable debt reduction from the restructuring transaction," Moody's vice president, senior analyst Arvinder Saluja said in a news release.

"The upgrade to the ratings also reflects the company's significant enhancement in liquidity through reduced debt service burden."

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