North American outsourced laundry services provider Wash BidCo Inc. (dba WASH) is planning to issue a $100 million fungible add-on to its term loan B (TLB) to fund a dividend to its shareholders. We had previously expected the company's sponsors would reinvest the funds into the business and prioritize debt reduction. Therefore, we revised our assessment of WASH?s financial policy to reflect the debt-financed dividend, which indicates behavior more in line with that of a financial sponsor-owned company. While the additional debt will increase the company's leverage, it will remain within our expectations for the current rating. S&P Global Ratings affirmed its 'B+' issuer credit rating on WASH, while concurrently lowering our issue-level ratings on its term loan due to
