S&P rates EPD B, loans B+, CCC+

Standard & Poor's said it assigned its B corporate credit rating to EPD, Inc., an entity established by the Carlyle Group to acquire the Engineered Products Division of the Goodyear Tire & Rubber Co.

At the same time, B+ bank loan ratings, one notch higher than the corporate credit rating, and 2 recovery ratings were assigned to the company's proposed $100 million revolving credit facility, $650 million first-lien senior secured term loan and $100 million senior secured delayed draw term loan, the agency added.

In addition, S&P said it assigned its CCC+ bank loan rating, two notches lower than the corporate credit rating, and 6 recovery rating to the company's $410 million second-lien senior secured term loan, indicating negligible recovery in the event of a payment default.

The outlook is stable.

"The ratings on EPD reflect the firm's highly leveraged capital structure and weak business profile as a global manufacturer of rubber and thermoplastic products," said S&P credit analyst Anita Ogbara.

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