S&P downgrades WWEX UNI, rates loans B-

S&P said it lowered the corporate credit rating on WWEX UNI Intermediate Holdings LLC to B- from B.

The outlook is stable.

The agency also said it assigned a B- rating to WWEX's proposed $70 million revolving credit facility due 2023 and $500 million first-lien term loan due 2025 to be issued by its subsidiaries SMB Shipping Logistics LLC and REP WWEX Blocker LLC.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC rating to WWEX's proposed $200 million second-lien term loan due 2026, also to be issued by SMB Shipping Logistics and REP WWEX Blocker.

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

The downgrades reflect the increase in debt leverage above previous expectations in connection with the proposed transaction, the agency said.

S&P said it expects this transaction will result in pro forma adjusted debt-to-EBITDA ratio of more than 7x in 2018.

Through both acquisition and organic growth, along with integration initiatives, the agency said it believes WWEX will increase earnings and reduce adjusted debt leverage to the 6x range by year-end 2019.

Despite an expectation for moderate improvement, S&P said it believes credit measures will remain appropriate for the rating over the next 12 months.

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