S&P lowers Wheels to negative

S&P said it revised the outlook on Wheels Inc. to negative and affirmed the A long-term rating and A-1 short-term rating issuer credit ratings.

The negative outlook reflects an expectation that over the next 18- to 24-months the company will maintain ongoing access to the vehicle asset-backed securitization market, the agency said, and operate with debt-to-total capital of 80% to 85% and funds from operations to debt of 40% to 50%.

Because of the company's heavy reliance on asset-backed securitization and secured funding, its balance sheet is substantially encumbered, which limits financial flexibility, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.