S&P keeps ATU on watch

Standard & Poor's said it was keeping its CCC- long-term corporate credit rating on A.T.U. Auto-Teile Unger Handels GmbH & Co. KG (ATU) on CreditWatch with negative implications.

S&P placed the rating on CreditWatch negative on May 23because of the continued weakening of the group's liquidity and rising concerns over its ability to successfully refinance its debt falling due in 2014.

S&P said it is also keeping the CCC- issue rating on ATU's €450 million senior secured notes due May 2014 on CreditWatch negative. The recovery rating on these notes is unchanged at 4, indicating an expectation of average recovery in the 30%-50% range in the event of a payment default.

The CreditWatch placement reflected the group's continued weakening liquidity caused by its poor operating performance throughout its financial year 2013-2014 ending June 30, 2013 and its high refinancing risks.

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