S&P trims Watco ratings

S&P said it lowered its issuer credit rating on Watco Cos. LLC to B- from B. The outlook is stable.

At the same time, the agency affirmed its B- issue-level rating on the company's unsecured notes. S&P also revised the recovery rating on the notes to 4 from 5, reflecting a higher recovery value as a result of the acquisitions. The 4 recovery rating reflects an expectation of average (30%-50%; rounded estimate: 35%) recovery in the event of default.

“The stable outlook on Watco reflects S&P Global Ratings' expectation that the company's credit metrics will remain consistent with current levels through 2019,” S&P said in a news release.

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