Fitch Ratings has downgraded Univar Solutions, Inc.'s (Univar) Long-Term Issuer Default Rating (IDR) to 'BB-'/Stable from 'BB+'/'Rating Watch Negative.

Fitch has also downgraded the issue ratings of the ABL revolver and ABL term loan to 'BB+'/'RR1' from 'BBB-'/'RR1', the senior secured term loans to 'BB+'/'RR2' from 'BBB-'/'RR2', and the senior unsecured notes to 'BB-'/'RR4' from 'BB+'/'RR4'. The Negative Rating Watch has also been removed from the ratings. These actions follow the closing of the company's acquisition by affiliates of funds managed by Apollo Global Management, Inc. and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

Concurrently, Fitch has withdrawn the ratings.

A 'BB-' rating level is consistent with the credit profile of Univar's direct parent, and the new issuer and filer of financial statements, Windsor Holdings III, LLC (BB-/Stable). Per Fitch's 'Parent and Subsidiary Linkage Rating Criteria,' Fitch believes that legal ring-fencing and access & control are both open between Windsor Holdings III, LLC and its wholly-owned subsidiary Univar, and that such assessment justifies assigning the same IDR to both Windsor Holdings III, LLC and Univar.

Fitch has withdrawn Univar's Long-Term IDR and long-term issue ratings as they are no longer considered relevant to the agency's coverage because the entity is no longer issuing debt, and Fitch understands that a de minimis amount of debt remains outstanding.

Key Rating Drivers

Key Rating Drivers do not apply as the ratings have been withdrawn.

RATING SENSITIVITIES

Rating Sensitivities do not apply as the ratings have been withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

Univar Solutions, Inc. is a global chemical and ingredients distribution company and provider of value-added services, working with leading suppliers worldwide. It is headquartered in Downers Grove, Illinois and maintains the number one market position in North America and the number two position in Europe.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

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