Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered - S&P Global Ratings’ Credit Research

Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered

Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered - S&P Global Ratings’ Credit Research
Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered
Published Jun 22, 2023
7 pages (2925 words) — Published Jun 22, 2023
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

BW Holding Inc. underperformed our expectations for the last several quarters and we believe credit metrics will remain under pressure through 2023. We project S&P Global Ratings-adjusted debt to EBITDA will remain above 10x and free operating cash flow (FOCF) will be negative this year. As a result, we lowered the issuer credit rating on BW Holding to 'CCC+' from 'B-'. The outlook is stable. At the same time, we lowered our rating on its first-lien term loan to 'CCC+' from 'B-'. The recovery rating remains '3'. The stable outlook on BW Holding reflects the company's adequate liquidity and no near-term debt maturities, which we believe mitigates further near-term ratings downside. The stable outlook incorporates our expectation for a softer

  
Brief Excerpt:

...- BW Holding Inc. underperformed our expectations for the last several quarters and we believe credit metrics will remain under pressure through 2023. We project S&P Global Ratings-adjusted debt to EBITDA will remain above 10x and free operating cash flow (FOCF) will be negative this year. - As a result, we lowered the issuer credit rating on BW Holding to '###+' from 'B-'. The outlook is stable. - At the same time, we lowered our rating on its first-lien term loan to '###+' from 'B-'. The recovery rating remains '3'. - The stable outlook on BW Holding reflects the company's adequate liquidity and no near-term debt maturities, which we believe mitigates further near-term ratings downside. The stable outlook incorporates our expectation for a softer macroeconomic environment along with sustained high interest rates will continue to pressure cash flows and keep leverage elevated for a prolonged period....

  
Report Type:

Research Update

Issuer
BW Holding Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered" Jun 22, 2023. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-BW-Holding-Inc-Downgraded-To-CCC-Outlook-Stable-Debt-Rating-Lowered-3010769>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: BW Holding Inc. Downgraded To 'CCC+', Outlook Stable; Debt Rating Lowered Jun 22, 2023. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-BW-Holding-Inc-Downgraded-To-CCC-Outlook-Stable-Debt-Rating-Lowered-3010769>
  
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