S&P: Delphi Automotive notes BBB

S&P said it assigned a BBB rating to Delphi Automotive plc's proposed $300 million senior unsecured notes, which will mature in 2046.

The proposed notes will rank equally with all of Delphi's other unsecured and unsubordinated debt.

The proceeds will be used to repay a portion of the principal outstanding on its 5% senior unsecured notes due 2023 and for general corporate purposes.

The agency said it rated the notes at the same level as the company’s BBB corporate credit rating.

Delphi is a tier-1 supplier to the global automotive industry, S&P explained, and its ratings reflect the company's lack of large near-term debt maturities, as well as an assumption that its credit metrics and free cash flow are sustainable.

The ratings also consider the company’s product diversity, low cost base and ability to sustain its recent profitability, the agency said.

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