S&P rates Wesco notes B+

Standard & Poor's said it assigned a B+ rating to Wesco Distribution Inc.'s $400 million senior unsecured notes.

The recovery rating is 6, indicating 0% to 10% expected default recovery

Wesco Distribution's parent, Wesco International Inc., will guarantee the notes.

The agency also raised the ratings on subsidiaries Wesco Distribution and WDCC Enterprises Inc.'s senior secured term loans by one notch, to BB from BB- because the recovery prospects for this debt in the event of default has improved.

The agency also said it revised the recovery ratings for the term loans to 4 from 5, indicating 30% to 50% expected default recovery.

The agency also said it revised the recovery prospects because Wesco plans to use the proceeds from the new unsecured debt to reduce the secured term loans, enhancing the collateral protection.

The BB corporate credit ratings on Wesco and Wesco Distribution remain unchanged.

The ratings reflect the satisfactory business risk profile, significant financial risk profile and a one-notch decrease due to the application of a comparable rating analysis, which reflects that actual credit metrics are at the low end of the significant range, S&P said.

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