S&P stabilizes Husky Technologies view

S&P said it revised its outlook for Husky Technologies Ltd. to stable from negative and affirmed its ratings, including the B- issuer rating.

“We revised the outlook to stable from negative primarily because Husky pushed out its debt maturity profile, and improved earnings and cash flow prospects. Husky's recent issuance of a $1.75 billion term loan B, $1 billion senior secured notes and $370 million of convertible PIK preferred equity push its nearest maturity to 2029 from 2025.

“Additionally, we assume the transaction will modestly reduce cash interest payments, scheduled annual debt amortization, and exposure to fluctuations in short-term interest rates. In our view, the longer-dated maturity profile meaningfully reduces refinancing risk and the likelihood that we would view the company's capital structure as unsustainable,” S&P said in a press release.

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