WESCO Distribution Inc.'s Proposed Senior Unsecured Notes Rated 'BB' (Recovery Rating: '4')

ENGLEWOOD (S&P Global Ratings) Feb. 24, 2025--S&P Global Ratings today assigned its 'BB' issue-level rating and '4' recovery rating to WESCO Distribution Inc. 's proposed $600 million senior unsecured notes due 2033. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a payment default. Parent WESCO International Inc. intends to use the proceeds to redeem all of its Series A Preferred Stock, of which $540 million is outstanding, and repay a portion of the amounts outstanding under its asset-based lending (ABL) facility, such that we view the transaction as leverage neutral. Our ratings on WESCO, including our 'BB' issuer credit rating, are unchanged. Though we forecast S&P Global Ratings-adjusted debt to

...March 10, 2025 ENGLEWOOD (S&P Global Ratings) Feb. 24, 2025--S&P Global Ratings today assigned its '##' issue-level rating and '4' recovery rating to WESCO Distribution Inc.'s proposed $600 million senior unsecured notes due 2033. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a payment default. Parent WESCO International Inc. intends to use the proceeds to redeem all of its Series A Preferred Stock, of which $540 million is outstanding, and repay a portion of the amounts outstanding under its asset-based lending (ABL) facility, such that we view the transaction as leverage neutral. Our ratings on WESCO, including our '##' issuer credit rating, are unchanged. Though we forecast S&P Global Ratings-adjusted debt to EBITDA will fall below 3x in 2026, we view the company's continued deleveraging as providing financial flexibility primarily to fund acquisitions and secondarily for shareholder returns. We continue to believe...

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