Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative - S&P Global Ratings’ Credit Research

Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative

Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative - S&P Global Ratings’ Credit Research
Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative
Published Apr 13, 2020
3 pages (1619 words) — Published Apr 13, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect demand for collision repair services to fall significantly because of the coronavirus as more consumers are staying home and driving less. As a result, we are lowering our issuer credit rating on Wand NewCo 3 Inc. (doing business as Caliber Collision) to 'B-' from 'B'. At the same time, we are lowering our issue-level ratings on the company's first-lien term loan to 'B-' from 'B' and the second-lien term loan to 'CCC' from 'CCC+'. The negative outlook reflects the increased risk that cash flow will remain negative for a number of months, hurting liquidity. This could occur if sales and margins contract more than our current expectations for an extended period of time due to weaker demand for

  
Brief Excerpt:

...April 13, 2020 - We expect demand for collision repair services to fall significantly because of the coronavirus as more consumers are staying home and driving less. - As a result, we are lowering our issuer credit rating on Wand NewCo 3 Inc. (doing business as Caliber Collision) to 'B-' from 'B'. - At the same time, we are lowering our issue-level ratings on the company's first-lien term loan to 'B-' from 'B' and the second-lien term loan to '###' from '###+'. - The negative outlook reflects the increased risk that cash flow will remain negative for a number of months, hurting liquidity. This could occur if sales and margins contract more than our current expectations for an extended period of time due to weaker demand for collision repair services resulting from COVID-19. NEW YORK (S&P Global Ratings) April 13, 2020--S&P Global Ratings today took the rating actions listed above....

  
Report Type:

Ratings Action

Issuer
Wand NewCo 3 Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative" Apr 13, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Wand-NewCo-3-Lowered-To-B-On-Expectations-Of-Weaker-Demand-Due-To-Coronavirus-Outlook-Negative-2411170>
  
APA:
S&P Global Ratings’ Credit Research. (). Wand NewCo 3 Lowered To 'B-' On Expectations Of Weaker Demand Due To Coronavirus; Outlook Negative Apr 13, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Wand-NewCo-3-Lowered-To-B-On-Expectations-Of-Weaker-Demand-Due-To-Coronavirus-Outlook-Negative-2411170>
  
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