S&P lifts Pike view to stable

S&P said it affirmed the B issuer credit rating on Pike Corp., along with the B issue-level rating on the company's term loan.

The agency also said it revised the outlook to stable from negative, reflecting an expectation that the company will continue to grow EBITDA due to good end-market demand, resulting in stable debt leverage in 2019.

Following stronger-than-expected revenue and earnings growth in 2018, S&P said it expects the company's core services will remain strong in 2019 with continued good end-market demand for Pike's services for utility distribution and transmission powerlines and substations.

The agency also said it anticipates the company's earnings will continue to benefit from high-margin storm work.

In 2018, the company demonstrated good project execution, growing its core services revenue even with a substantial amount of storm work completed, S&P said.

The company's credit measures also should continue to benefit from the voluntary debt principal repayments Pike made in 2018, the agency said.

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