Research Update: WESCO International Inc. Subsidiary's Senior Unsecured Notes Upgraded To 'BB'; Other Ratings Affirmed; Outlook Stable

We expect WESCO International Inc. to maintain steady operating performance and credit metrics amid broadly favorable end-market conditions over the next 12 months. We are raising our issue-level ratings on WESCO Distribution Inc.'s senior unsecured notes to 'BB' from 'BB-' and revising the recovery rating to '4' from '5' following the company's partial repayment of its term loan using free cash flow. We are affirming all other ratings, including our 'BB' corporate credit ratings, on WESCO and WESCO Distribution. The stable outlook reflects our expectation that WESCO will maintain S&P Global Ratings-adjusted debt to EBITDA at the better end of the 3x-4x range in the next 12 months on moderate revenue growth and relatively steady margins. On June 25, 2018,

...+ We expect WESCO International Inc. to maintain steady operating performance and credit metrics amid broadly favorable end-market conditions over the next 12 months. + We are raising our issue-level ratings on WESCO Distribution Inc.'s senior unsecured notes to '##' from '##-' and revising the recovery rating to '4' from '5' following the company's partial repayment of its term loan using free cash flow. + We are affirming all other ratings, including our '##' corporate credit ratings, on WESCO and WESCO Distribution. + The stable outlook reflects our expectation that WESCO will maintain S&P Global Ratings-adjusted debt to EBITDA at the better end of the 3x-4x range in the next 12 months on moderate revenue growth and relatively steady margins....

Research Update