S&P rates CWT, notes CCC+, loan B

S&P said it gave CCC+ ratings to CWT Travel Group Inc. and its $625 million senior secured notes due in 2026. The agency also assigned B issue and 1 recovery ratings to the company’s $90 million first-lien term loan. CTW’s capital structure also includes an unrated $60 million revolver. The outlook is negative.

“The CCC+ issuer credit rating and negative outlook reflect our expectation that CWT may not generate cash flow sufficient to sustain its capital structure over the next two years and that leverage is likely to be very high through to at least 2023. Our ratings and outlook on CWT reflect our expectation that CWT will likely not generate significant EBITDA or positive free cash flow generation until at least 2023 given a prolonged and slow recovery in global business travel,” S&P said in a press release.

The ratings follow CWT completing its recapitalization plan, which shaved about $800 million in debt, the agency said.

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