S&P trims Wabash National

S&P said it downgraded its rating for Wabash National Corp. to BB- from BB, its first-lien term loan to BB from BB+ and the rating on its $325 million of senior unsecured notes to B from B+.

The loan’s 2 recovery rating and the 6 rating on the notes are unchanged.

“The weakened U.S. economy and the impact of Covid-19 have likely exacerbated the previously anticipated downturn in trailer demand this year. As a result, we assume revenue will decline across all three of Wabash National Corp.'s business segments. We assume EBITDA margin deterioration will be limited compared to previous cyclical downturns, due to the portion of variable expenses in the company's cost structure,” the agency said in a press release.

S&P said it changed the outlook to negative from stable, citing a risk of leverage increasing this year along with uncertainty over the effect of the coronavirus containment measures and a recession.

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