S&P rates Western Digital notes BB+

S&P said it assigned its BB+ issue-level and 3 recovery ratings to Western Digital Corp.'s expected seven- and 10-year secured notes.

The agency concurrently affirmed its BB+ rating on the company and its unsecured notes and raised the notes’ recovery rating to 3 from 4. On Monday, Western Digital exercised its option to expunge the security from its bank debt upon being upgraded to BBB- by Fitch Ratings.

“Going forward, its revolver and term loan will be unsecured so there is no longer any priority debt ahead of the unsecured lenders. Finally, we withdrew our BBB- issue-level and 2 recovery ratings on the company's existing term loan and revolving credit facility,” S&P said in a press release.

It will use the proceeds to repay part of its term loan A due in February 2023.

The stable outlook is unchanged.

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