S&P upgrades Caliber Collision

S&P said it upgraded Caliber Collision’s (Wand NewCo 3 Inc.) issuer rating to B from B-.

“Wand NewCo 3 Inc.'s credit metrics continue to improve as it benefits from favorable demand trends in the collision repair industry,” the agency said in a statement.

The company also extended and upsized its revolving credit facility to 2025 and $625 million, and completed a $160 million repayment of its second-lien term loan.

“We forecast Caliber's operating performance and credit metrics will remain strong through 2024. We expect the company's operating performance to benefit from healthy demand for collision repairs considering that vehicle miles traveled have normalized to some degree since the Covid-19 pandemic.

“At the same time, we expect labor shortages coupled with wage inflation in the industry to result in tight supply for collision repairs, causing demand to materially outpace capacity. These dynamics have enabled Caliber to increase the prices it charges to insurance companies, helping mitigate inflationary pressures and supporting Caliber's financial performance,” S&P said in a statement.

The outlook is stable.

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