Moody's rates Wheel Pros loans B1, B2, WP NewCo loan Caa3, notes Ca

Moody's Investors Service said it affirmed Wheel Pros, Inc.'s corporate family rating at Caa3 and probability of default rating at Caa3 PD/LD. The /LD appended to the PDR reflects a limited default designation following the completion of the company’s debt exchange and will be removed from the PDR after three business days.

At the same time, Moody's said it assigned a B1 rating to Wheel Pros' asset-based credit facility and a B2 rating to the company's new FILO term loan.

Moody's affirmed both of Wheel Pros' existing debts that were subject to the exchange, including the Caa3 rating on its first-lien term loan and the C rating for the senior unsecured notes.

Lastly, Moody's assigned a stable outlook, Caa3 rating to a new first-lien term loan and a Ca rating to new second-lien secured notes issued by WP NewCo, LLC, a new subsidiary of Wheel Pros.

The outlook for Wheel Pros remains stable.

The rating actions reflect ongoing weakness in Wheel Pros' operating performance, and Moody's view that the capital structure is unsustainable absent a significant recovery in earnings, the agency said in a news release.

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