Research Update: WESCO International Inc. And Subsidiary Upgraded To 'BB' On Strong Performance And Significant Backlog, Outlook Stable

Pittsburgh-based industrial distributor WESCO International Inc.'s operating performance was very strong in 2021 supported by its smooth integration of Anixter Inc. while its end markets continued to show signs of recovery. Although the company's free cash flow was weaker than we expected due to the ramp up of its inventory, its backlog increased by 88%, which will provide it with good revenue visibility for 2022. Supported by its good operating performance, WESCO reduced its S&P Global Ratings-adjusted debt leverage faster than we previously anticipated. We now believe the company will continue to focus on strengthening its leverage profile over the next 12 months. Therefore, we raised our issuer credit ratings on WESCO International and its subsidiary, WESCO Distribution Inc., to

... International Inc.'s operating performance was very strong in 2021 supported by its smooth integration of Anixter Inc. while its end markets continued to show signs of recovery. Although the company's free cash flow was weaker than we expected due to the ramp up of its inventory, its backlog increased by 88%, which will provide it with good revenue visibility for 2022. - Supported by its good operating performance, WESCO reduced its S&P Global Ratings-adjusted debt leverage faster than we previously anticipated. We now believe the company will continue to focus on strengthening its leverage profile over the next 12 months. - Therefore, we raised our issuer credit ratings on WESCO International and its subsidiary, WESCO Distribution Inc., to '##' from '##-'. At the same time, we raised our issue-level rating on WESCO Distribution's senior unsecured notes to '##' from '##-' and our issue-level rating on Anixter Inc.'s senior unsecured notes...

Research Update